The iPhone maker’s latest results do little to boost its share price which is 30% down from its peak.
Apple has signalled lower iPhone prices may be on the way after its latest set of financial results confirmed falling sales.
The figures covering its first financial quarter to the end of December were issued after the US markets closed and followed a revenue warning issued by the company earlier in the month which flagged weaker-than-expected China sales and poor phone upgrade numbers.
Apple reported a 5% fall in overall revenue to $84.3bn (£64.5bn) – in line with its lower guidance and down 5% on the same period last year.
But it said iPhone revenues – which make up the bulk of its revenue – were 15% lower.
In an interview with the Reuters news agency, chief executive Tim Cook signalled that price rises to help account for the expected sales slowdown would be tempered to help drive a recovery.
He said iPhone prices – also raised outside the US because of a stronger dollar – would be set at local currency rates in future.
Apple had warned on 2 January that sales would be hit by weaker than anticipated economic growth in key emerging markets, especially China, and by fewer customers upgrading their handsets in the world’s second-largest economy.
The company has also been grappling strong smartphone competition from Asia rivals, especially Huawei.
Apple shares – which have been trading at levels seen last February amid a broader tech slowdown in recent months – were 3% up in after-hours trading.
That was seen as a response to an improved outlook for the second quarter after an improved January.
Apple’s share price is down almost a third on last October following a collapse in tech stocks last year over worries about over-valuation, the US/China trade war and resulting global slowdown.
It saw Apple lose its crown as the world’s most valuable listed company.
Both Amazon and Microsoft overtook Apple in market value terms as 2018 drew towards a close.
While Apple was first to achieve a market cap of $1trn (£765bn) it has since sunk towards $750bn (£574bn).
Skynews
