US technology giant Apple has reported its first drop in quarterly revenue in more than a decade. Flagging iPhone sales are putting pressure on the world’s most valuable public company.
Apple on Tuesday reported a drop in its 2016 second quarter earnings, taking in $50.6 billion (44.8 billion euros) compared to last year’s $58 billion for the same period.
The drop marks Apple’s first year-on-year drop in quarterly revenue since 2003.
The company posted a “quarterly net income of $10.5 billion, or $1.90 per diluted share,” Apple said in a statement.
It added that its “gross margin was 39.4 percent compared to 40.8 percent” in the second quarter of 2015.
The announcement comes as Apple has witnessed its iconic iPhone’s sales drop, echoing global a slowdown on smartphone purchases.
However, Apple CEO Tim Cook remained optimistic about the results, saying the company performed well despite challenging marketplace conditions.
“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Cook.
“We are very happy with the continued strong growth in revenue from services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices,” Apple’s chief executive added.