Apple's revenue, iPhone sales fall in the first quarter

Apple said net sales of iPhones were down by US$9b compared to the same quarter last year. Photo / Getty Images

Apple on Tuesday said its revenue fell 5 per cent in the first quarter, compared with US$88.3 billion ($129.4b) a year earlier.

Revenue from the maker of iPhones came in at US$84.31b, slightly higher than the company estimated earlier this month, when it warned that sales would fall to about US$84b.

Apple's warning was its first in more than 15 years. At the time, Apple chief executive Tim Cook cited a slowdown in China's economy as well as President Donald Trump's trade war for weakening iPhone demand.

Apple's stock jumped more than 4 per cent in after hours trading.

In its results, Apple said net sales of iPhones were down by US$9b compared to the same quarter last year, though net sales increased in other categories such as services, wearables and tablets. Altogether, Apple reported net income of US$19.97b for the quarter compared to US$20.01b in the same period a year earlier.

Cook conceded that many Apple users are "holding onto their older iPhones a bit longer than in the past," which contributed to lower iPhone demand. But he also pointed to shifts in foreign exchange values that made Apple products more expensive in certain markets.

Apple also said it is expecting lower revenues next quarter - between US$55b and US$59b - compared to the same time last year, when it reported revenues of US$61.1b.

Shareholders were already reeling from Apple's acknowledgement this week of a major flaw in its mobile operating system that allowed attackers to eavesdrop on the recipient of FaceTime calls. Apple told users it is aware of the issue and that it plans to release a software update this week.

- AP