Apple has announced its fiscal Q2 2016 results reporting a worst quarter results in 13 year, due to a 16 percent decline in iPhone sales, compared to the same period last year.

Reporting a revenue of US $50.6 billion, which is 10 percent lower compared to the same quarter last year, Apple is having a worst quarter in last 13 years. Gross margin is at US $19.9 billion, or 39.4 percent, down from 40.8 percent in Q2 2015. Net income is also down by 22.5 percent from $13.5 billion down to US $10.5 billion.

The main reason are the low iPhone sales. Apple managed to sell 51.2 million iPhones during this quarter, which a 16 percent lower compared to the same period last year. iPads did not do better either as the sales further dropped down to 10.2 million, a 19 percent drop compared tot he last year.

The only shiny part of Apple's financial report are services, including internet services, AppleCare, Apple Pay, and others, are up by 20 percent, bringing just under $6 billion during the quarter. Apple also managed to grew in "other products" segment, which include Apple Watch, Apple TV, iPod, Beats, and accessories, which were up by 30 percent, bringing in US $2.2 billion.

Apple also expects that the next quarter will be similar and it appears that a lack of good iPhone product certainly has a big effect on the company.



Source: Apple.com.