Apple reports iPhone sales slump - is the iPhone 8 to blame?

Despite the fall, Apple increased profits and revenues as it sold pricier versions of its latest iPhone 7 and posted growth in its vast services division, which includes app downloads, music sales and cloud storage.

In an appearance on CNBC's "Mad Money with Jim Cramer", Cook announced the fund and said Apple will reveal the first company it is investing in later this month.

This is down from the same quarter in 2016, where Apple sold a total of 51.2 million iPhones, they also sold 8.92 million iPads, this is also down from 10.2 million iPads for the same quarter a year ago.

Mr Maestri said that, during the period, Apple actually cut inventory going through its retail channel by approximately 1.2 million phones, so on a sell-through basis, it sold about 52 million units. That's up from $10.5 billion, or $1.90 a share in the year-ago quarter, on $50.6 billion in sales. Earnings per share were reported as $2.10, in comparison with the $2.02 consensus forecast. Ninety-three percent of Apple's $256.8 billion cash is held overseas.

But the results apparently underwhelmed investors, as Apple's share price fell 0.6% to $147.51 in regular trading on Tuesday and then dropped as much as 2.4% to $143.86 after hours.

The closest we have come to knowing sales figures for the Apple Watch came during Apple's recent quarterly earnings call given to analyst this week. Another bump that Apple faced this quarter was the sale of iPhones. Apple sold 4.19 million Macs during Q4, up four per cent on the 4.03 million sold in Q2 2016.

Traditionally, Apple's third quarter is its weakest, because its product launches are geared towards the end of the year, with sales targeted on the holiday season.

Apple softened the blow by announcing a $50bn increase to the company's dividend and share buyback programme. And we had more switchers than ever before.

Apple's growth rates were even higher, over 20 per cent in many other markets, including Brazil, Scandinavia, the Middle East, Central and Eastern Europe, India, Korea and Thailand, Maestri said.

  • Arturo Norris