Apple on Tuesday posted a rare decline in revenue and profits for the second quarter - the first time it has done so in more than a decade. CEO Tim Cook cited steep declines in revenue from China and slowing iPhone sales as the main catalysts behind the surprising profit slump. Revenue for the quarter ended in December came in at $84.3 billion, which is a 4.5 percent decline from the same quarter last year. Profits slid to $19.97 billion for the quarter, down from roughly $20 billion in the same quarter last year. Greater China revenue declined a whopping 26 percent compared to last year, with sales in the region coming in at $13.17 billion.
Apple has slashed its estimated revenue for the first quarter after the tech giant saw'fewer iPhone upgrades' than it expected. In a letter to investors, CEO Tim Cook outlined why Apple was forced to lower its projected revenue to $84 billion - down from a range of $89 billion to $93 billion it called out in its previous earnings release in November. Cook cited the complicated timing of Apple's latest smartphone launches, economic weakness in emerging markets like China and a number of other factors as reasons behind the gloomy guidance. Shares of Apple plunged minutes after a halt on the stock was removed, with the stock sliding 7.5 percent to $146.23 in after-hours trading. The revised guidance is a rare move for Apple, one that it hasn't made in several years, experts noted.
Apple on Wednesday lowered its revenue guidance for the first quarter of 2019, citing rough Chinese market conditions and fewer iPhone upgrades than expected. In November, Apple said it expected Q1 revenue between $89 billion and $93 billion. A year prior, revenues came to $88.29 billion. Additionally, Apple is now expecting to report operating expenses of approximately $8.7 billion, a gross margin of approximately 38 percent, other income/(expense) of approximately $550 million and a tax rate of approximately 16.5 percent before discrete items. While Apple expected economic weakness in some emerging markets, "this turned out to have a significantly greater impact than we had projected," CEO Tim Cook wrote in a letter to shareholders.
Apple published its fourth quarter financial results on Thursday, beating market expectations and posting its best September quarter ever. Services revenue reached an all-time high of $10 billion, while the iPhone and Wearables set September revenue records. However, iPhone sales were flat year-over-year, and Apple's Q1 outlook is cautious. Revenue came to $62.9 billion, an increase of 20 percent from the year-ago quarter. Wall Street was expecting earnings of $2.78 per share on revenue of $61.57
Apple reported fourth quarter results on Tuesday, posting better-than-expected iPhone sales, and slightly beating earnings and revenue expectations. The company also gave a stronger-than-expected outlook for the first quarter of fiscal 2017. The Cupertino technology giant posted earnings of $1.67 a share on revenue of $46.9 billion. Wall Street was expecting earnings per share of $1.65 on revenue of $46.89 billion. The company sold 45.5 million iPhones -- down 5 percent year-over-year but still beating expectations of 45 million in sales for the quarter.