Apple CEO reassures investors despite falling revenue

iPhone sales decline again but CEO Tim Cook is certain AR and AI technologies will revive the iPhone

Tags: Apple Incorporated
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Apple CEO reassures investors despite falling revenue Apple CEO Tim Cook said: "We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter." (Getty Images)
By  Aasha Bodhani Published  July 27, 2016

Apple is experiencing another slump, as its Q3 2016 financial earnings reveal that iPhone sales are again declining.

Apple reported that its Q3 2016 results saw earnings of $42.4bn in revenue and $7.8bn in profit from April to June, furthermore Apple were able to beat Wall Street's short-term expectations, however these were set quite low due to Apple's disappointing results in Q2.

Once sales are broken down across Apple's products, it would appear the iPhone, iPad and Mac have all seen a decline. During Q3 2016, the iPhone sold 40.4m units compared to 47.5m this time last year, the iPad sold 9.9m units compared to 10.9m last year and the Mac sold 4.2m compared to 4.8m last year.

Apple CEO Tim Cook said: "We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter. We had a very successful launch of iPhone SE and we're thrilled by customers' and developers' response to software and services we previewed at WWDC in June."

However not all is doom and gloom; Apple's App Store revenue was at its highest ever and also services business grew by 19% year-on-year.

The results have led CEO Cook to provide a glimpse into Apple's future, as he reassured investors that the company is prepared to invest in artificial intelligence (AI) and augmented reality (AR) technologies.

Cook, who is typically secretive about Apple's investments, discussed the success of Pokémon Go and how Apple itself will look to focus on AR and also AI, which the company already uses to improve battery consumption. He also reckons such technologies will reinforce the importance of the iPhone.

Despite Cook's revelation, it does not change that Apple has seen a decline in sales this year, additionally, rumours suggest the release of the next iPhone will largely resemble current models, the iPhone 6S and 6S Plus, meaning sales may again disappoint. Instead, bigger changes are expected to be made in 2017, to mark Apple's 10 year anniversary.

Apple has not revealed specific details of revenue sales in Q4 2016, but has projected revenue between $45.5bn and $47.5bn, which is less compared to the $51.5bn Apple made in Q4 2015.  

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