Apple profits and revenues fall as demand for iPhones slows

Chief executive Tim Cook says it was 'disappointing' to miss revenue guidance

Results come after tech giant issued warning to investors and cut its sales forecast due to sales slump in China. (Getty)

Apple has reported a decline in revenue and profits in its latest quarterly financial results as demand slows for its star product, the iPhone.

The results showed a 15 per cent fall in sales of the iPhone in the three months ending to 29 December, diving from $9.1bn year-on-year to £51.9bn (£39.8bn).

Mac, iPad and the wearables, home and accessories category all experienced an increase in net sales, but the most notable growth came from Apple’s services – which includes its Apple Music streaming platform, the App Store, iCloud storage and Apple Pay – jumping 19 per cent, from $9.1bn (£7bn) to $10.9bn (£8.3bn) year-on-year.

However, combined, the hole left by weak iPhone sales resulted in a total drop to $84.3bn (£64.5bn), versus $88.2bn (£67.6bn) 12 months prior.

Profits also fell slightly to $19.9bn (£15.3bn), compared to $20.1bn (£15.4bn) previously.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said chief executive Tim Cook.

“Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our services business to new records thanks to our large and fast-growing ecosystem.”

The results come after Apple issued a rare warning to investors at the beginning of the month, cutting its sales forecast due to a slump in iPhone sales in China.

They reflected the economic slowdown in China, with sales in the country down sharply compared to any other region.

Press Association