Apple reports iPhone sales down, 1st revenue drop since 2003

Industry watchers fret that the iPhone 7 won't be radically different from the iPhone 6 - a problem that plagued the 6s model last fall, resulting in flat holiday sales of the gadget. This comes after an incredible run that saw the company produce the best fiscal quarter of any company, ever.

Apple reported that iPhone unit sales were down from a year ago for the first time coming in at 51.2m devices sold, down 16pc.

Apple financial results Tuesday marked the end to the gadget giant's years-long streak of bounding growth, as it reported its first quarter of declining sales since 2003 because of cooling demand for the all-important iPhone. Join 10,000 tech leaders this May in Amsterdam.

Speaking with CNBC, Apple CEO Tim Cook said the company is in "the early innings of the iPhone" and that they "feel good" about their business in China.

Since then, the company has also launched the iPhone SE, a major update to the almost three-year-old iPhone 5s that now comes with similar specs to the current generation 6s but at a lower price.

While the likely decline may be a headline, analyst Munster said it's not a reason to worry for Apple. This compares to sales of 61.17 million units and revenues of $40.28 billion previous year.

Apple's guidance for Q3 2016 suggests it expects the downward trend to continue, with the company forecasting expected revenue of $41-43 billion.

Apple shares closed Tuesday down less than one percent to $104.35. Macs went from 4.6 million a year ago to 4 million, and iPads sunk from 12.6 million units to 10.3 million.

Even Apple has warned of a hard quarter. Mac sales also experienced declines.

Sales of the iPhone were down, as expected-but not by as much as analysts had predicted.

"Given that Apple is nearing the end of the iPhone 6-series cycle and facing hard iPhone comparisons, we are modeling a year-over-year decline in sales, profits and iPhone units in Q2", Drexel Hamilton analyst Brian White said in a research note Monday. The Board also boosted its quarterly dividend by 10 percent to $0.57 per share, payable on May 12 to shareholders as of May 9.

Cupertino, California-based Apple has entered the wearables market, improved its Mac lineups and launched a new music-streaming service.

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