The net profit of Apple Inc (NASDAQ: AAPL) in the fiscal third quarter ended June 25, fell 27% to $ 7.8 billion compared with $ 10.68 billion in the same period of the previous year, is said in their press release.
Apple earnings per share decreased to $ 1.42 from $ 1.85.
Revenues decreased by 14.6% to $ 42.36 billion from $ 49.6 billion a year earlier. Revenue decreased in the second quarter in a row amid decreasing sales of the iPhone.
Nevertheless, the results were better than expected.
The experts polled by Thomson Reuters, on average, had expected the Apple earnings at $ 1.38 per share on revenue of $ 42.1 billion.
In the last quarter, Apple has reduced iPhone sales to 40.4 million units compared to 47.5 million smartphones in the third quarter of the previous year.
The consensus forecast of analysts polled by FactSet estimated the iPhone sales at 40 million units.
iPhone sales drop was recorded in the second quarter in a row after a continuous growth over the previous eight years.
The reduction in iPhone sales is caused by weakening demand for in China. iPhone sales in mainland China, Hong Kong and Taiwan fell 33% in the last quarter, to $ 8.85 billion, while in the previous year there was recorded sales growth of 112%.
Patrick Moorhead, an analyst at Moor Insights & Strategy said that: "China was a major letdown. Samsung (KS: 005930) and Huawei are much more competitive now than a year ago and the Chinese economy is not doing well at all."
The revenue from iPad sales increased by 7%, but the realization of these devices was reduced in the tenth quarter in a row - by 9% to 9.95 million units. Sales of Mac computers were down the third consecutive quarter, by 11%.
Meanwhile, Apple's revenue in the services sector, including the subscription to Apple Music, as well as the income from Apple Pay applications, rose 19% to $ 5.98 billion.