Flagging demand for iPhones meant Apple (US:AAPL) recorded its first quarterly sales decline in 13 years in the three months to 31 March. Moreover, management expects inventory reductions in response to the challenging economic backdrop, the lower average selling price of the new iPhone SE and overly optimistic forecasts for sales of Mac computers to weigh on revenue in the current quarter. It now forecasts $41bn to $43bn (£28.1bn to £29.5bn), well short of analysts' expectations.
After rising for eight consecutive years, iPhone shipments slid 16 per cent to 51.2m units. Combined with brisk demand for cheaper models, that meant iPhone revenues slumped 18 per cent to below $33bn. Broker Drexel Hamilton cut its forecasts and now expects EPS of $8.06 in the year to September, rising to $9.19 in FY2017 ($9.06 in FY2015).
