SAN FRANCISCO: Apple on Tuesday reported its first-ever drop in iPhone sales since launching the smartphone in 2007 as the tech giant's long streak of rising revenue ended.
Apple said iPhone sales dropped year-over-year for the first time, slipping to 51.19 million units in the recently ended quarter compared with 61.17 million in the same period a year ago.
Profits fell as well: Apple reported net income of $10.5 billion in the fiscal quarter to March 26 from $13.6 billion last year.
With iPhones the main driver of sales for the company, revenue fell on a year-to-year basis for the first time since 2003: $50.6 billion from $58 billion a year earlier.
Apple shares dove more than eight percent to $95.90 in after-market trades that followed release of the earnings figures.
Sales of iPhones, the heart of Apple's mobile age money-making machine, were down 16 percent, according to the earnings report.
Apple chief executive Tim Cook said of the slump that "this too shall pass."
Analysts said it was not surprising to see the drop given the saturation of the global smartphone market.
"Following a rapid expansion into new markets over the years from 2007-2011, Apple was approaching saturation of the available distribution channels, and many of those already in the smartphone market who could afford to buy an iPhone had one or one of its high-end Android competitors," said Jan Dawson at Jackdaw Research.
Dawson said Apple managed to boost sales in a slow-growing market with its large-screen models, but that it is unclear if it can regain momentum.
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