Thursday 28 July 2016 2:30 pm

Apple’s iPhone sales and revenue fall again – but Wall Street’s loving it

Apple shares have jumped more than seven per cent, breaking through the $100 mark, after reporting earnings and iPhone sales slightly ahead of Wall Street expectations on Tuesday evening.

The figures

Apple revenue hit $42.4bn in the third quarter, down from $49.6bn in the same period last year and from $50.6bn in the previous quarter.

That came in slightly ahead of analyst expectations of around $42bn, however.

Earnings per share came in at $1.42, also ahead of a consensus estimate of $1.38 per share.

iPhone sales came in at 40.4m units That was slightly ahead of the 40m expected by analysts but down on the 47.5m sold in the same quarter last year

Guidance for the fourth quarter is revenue of $45.5bn and $47.5bn, in line with consensus forecasts of $45.7bn.

Why it’s interesting

Apple’s revenue growth came to an abrupt halt last quarter, experiencing its first decline since 2003, while iPhone sales dropped for the first time ever since it first launched nearly a decade ago.

Guidance put this quarter lower again and analysts were expecting it too.

Thanks to Apple, the world has reached smartphone saturation point, and while the giant still dominates, it’s not immune.

What Apple said

“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said Apple boss Tim Cook.

“We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”