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Apple’s profits drops 16% in three months

by Amwal Al Ghad English
Apple

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.

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