Apple’s profits drops 16% in three months

Apple said its profits dropped 16 percent during three months, while revenue fell 5.1 percent, according to Mubasher.

The company’s net income came in at $11.56 billion in the period between January and March, compared with $13.82 billion in the same period last year. Diluted earnings per share (EPS) fell to $2.46, from $2.73.

Apple’s net sales totalled $58.01 billion in the three-month period ended last March, up from $61.13 billion in the same period of the prior year.

This came mainly on the back of a fall in its revenue from product sales which amounted to $46.56 billion, down from $51.28 billion.

Apple is facing a decline in its iPhone sales within a smartphone-saturated market and wild competition in China from domestic rivals like Huawei.

However, Apple said that its services revenue hit a record high of $11.45 billion during its second quarter.

The company eyes growth in areas of services and wearable gadgets such as Apple Watch and AirPods.

Despite the year-on-year declines, the US tech giant’s quarterly earnings came well above Wall Street’s targets, sending its shares soaring in extended trading.

Analysts expected Apple to post $2.37 per share on sales of $57.55 billion.

For its third fiscal quarter, Apple projects to generate $53.5 billion in sales, while no EPS guidance was provided.