Apple’s iPhone sales have dropped at record pace, with the tech giant reporting that revenue has fallen by 17% in the first quarter ending March to $31bn, compared with the previous year.
Tim Cook, Apple’s chief executive said sales were strong towards the end of March following price cutting in China to help boost demand.
In China, Apple competes with rivals such as Xiaomi and Huawei who are cheaper, but adjustments in China with lower taxes on the iPhone and new trade deals have helped sales to recover in the quarter. Deals that are affordable and offered by London based mobile shop fonehouse.co.uk.
Apple’s guidance for their third quarter revenue has increased to between $52.5bn and $54.5bn. However, the three months to March sales were $58bn and analysts estimated $57.3bn.
Total sales were below expectations of $61.1bn for the second quarter in 2018. Demand in China improved but sales for the region were still down by 20%.
“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for services, and the strong momentum of our wearables, home and accessories category, which set a new March quarter record,” said Tim Cook, Apple’s chief executive officer.
Yoram Wurmser, principal analyst at eMarketer said, “The long-term growth of the company still depends directly and indirectly on iPhone sales.”