Apple Inc recently unveiled their third Quarter earnings and it indicated the company is going through a huge revenue fall. The sales of iPhone still continue to decline. As per the report, the number of iPhone sold in the third quarter is 40.4 million while it was 47.5 million during this quarter in the last year. This drop in sales resulted in fall in profit as well and the company has faced 27% fall. The last quarter too witnessed fall in iPhone sales of 16% while the sales drop is 15% this quarter.

Apple's iPhone sales fall after the announcement of iPhone 7
Apple’s iPhone sales fall after the announcement of iPhone 7

This drop in sales resulted in fall in profit as well and the company has faced 27% fall. The last quarter too witnessed fall in iPhone sales of 16% while the sales drop is 15% this quarter.

iPhone SE was launched by Apple in March of this year which had some good impact on the overall sales even though the average selling price of iPhone dropped to $595 from $662 in the last year and this is definitely because most people are going for the latest and smaller iPhone SE.

The Reason is Apple Depend on Its iPhone Sales for The 60% of Revenue

Market Research firm Gartner previously indicated that there will be a drop in Smartphone sales this year worldwide and while this might have a negative impact on Apple, companies like Samsung and Google can manage it. The reason is Apple depend on its iPhone sales for the 60% of revenue. But the good news is that this giant tech company is experiencing impressive growth in another device which is service and Apple is generating good profit from its service rather than selling apple devices like Mac.

Apple announced their new iPhone model in September and according to experts, this is one of the main reason why all the companies are facing a slowdown in Smartphone sales. However, the new model which might be called as iPhone 7 is expected to reach later this year which will come with the bigger camera, improved antenna lines while it will skip the headphone jack.