iPhone sales drop again due to shrink in demand from China, Sales in India surges
Apple CEO Tim Cook has said they will open more showrooms in India considering the increased demand
Apple i phone sales continue to fall for the second quarter but it sold more phones than the analysts have estimated.
The US tech company sold 40.4 million i phones in the third quarter slightly ahead of the estimated sale of 40.2 million phones.
Demand for i phone began to slowdown since the second quarter for the first time after it was launched in 2007. i phone is the Apples most important product and account for most of the profits of the company.
Following the results its shares rose 7 per cent in after-hours trading.
The drop in demand has resulted in pushing down Apple's total revenue in the third quarter of the fiscal year by 14.6%. Sales for i phones have slowed down mainly because of the drop in demand in China.
“China was a major letdown,” said Patrick Moorhead, an analyst at Moor Insights & Strategy. “Samsung and Huawei are much more competitive now than a year ago and the Chinese economy is not doing well at all.”
There has been a drop of 33% in demand for i phone in China. China accounts for the quarter of the i phone sales more than Europe.
India was one of the rare bright spots, with 51 percent growth in iPhone sales, as Apple increasingly concentrate into emerging markets.
“India is now one of our fastest growing markets We're looking forward to opening more retail stores in India down the road, and we see huge potential" Apple CEO Tim Cook said
Apple's quarterly net profit fell 27 percent to $7.8 billion, while revenue of $42.36 billion beat analysts' average estimate of $42.09 billion, according to Thomson Reuters
Apple forecast fourth-quarter revenue of $45.5 billion to $47.5 billion, largely above Wall Street's average estimate of $45.71 billion, according to Thomson Reuters
The forecast, covering the quarter ending in September, will likely include at least the first weekend of sales of the iPhone 7 range, which Apple is expected to launch in September.