Apple has reported revenue of $50.6 billion with a net profit of $10.5 billion in their earnings for the financial year Q2 2016 that ended March 26, 2015. Revenues were down 13% year-over-year and quarterly profit fell 22.5% as revenue declined for the first time since 2003. Sales were down across all the categories. Apple sold 51.2 million iPhones in the quarter compared to 61.2 million in the year-ago quarter, a decline of 16%.
It sold 10.3 million units of iPad compared to 12.6 million units in the year-ago quarter and 4 million Macs compared to 4.6 million last year, a decline of 12%. iPhone sales grew 56% in India. CEO Tim Cook believes that expansion of 4G in India will increase the sales.
In Asia, revenue grew strongly in Japan, but it declined in greater China and the rest of Asia-Pacific. In Mainland China, revenue was down 11%, compared to 81% growth a year ago. “We remain very optimistic about the China market over the long term, and we are committed to investing there for the long run,” said Luca Maestri, Apple’s CFO.
Revenue from services were $6 billion, an increase of 20% over the same quarter last year due to continued strong performance of the App Store, with revenue growing 35% to a new all-time high. Revenue from other products grew 30% over last year, mainly due to Apple Watch sales. Apple said the unit sales met their expectations in the quarter, as usual it did not reveal any numbers.
Apple has made 15 acquisitions in the last four quarters to accelerate product and Services roadmaps. It has announced an extension of the timeframe of the capital return program by four quarters through March of 2018 is expanding the total program size from $200 billion to $250 billion.
Apple expects revenue between $41 and $43 billion for FY Q3 2016, a decline of 15% to 19%, comparable to the 17% sequential decline that the company had averaged from the March to June quarter for the last three years. It also expects seasonal sequential declines in iPhone and iPad sales and a sequential increase in Mac sales and also iPhone ASPs to decline sequentially.