Apple’s tablet sales slump by 9%

The iPhone maker reported sales of $37.4 billion (£21.9 billion) in its third quarter ending June, falling short of expectations for about $38 billion (£22.3 billion).The Cupertino-based company also revealed that only 13.2 million iPads were sold in the last three months, compared to 16.3 million in the previous quarter.The results have triggered fears that […]

The iPhone maker reported sales of $37.4 billion (£21.9 billion) in its third quarter ending June, falling short of expectations for about $38 billion (£22.3 billion).
The Cupertino-based company also revealed that only 13.2 million iPads were sold in the last three months, compared to 16.3 million in the previous quarter.
The results have triggered fears that iPad sales are set to get worse once Apple launches its rumoured, large-screen iPhone this autumn.
Chief executive Tim Cook put the poor figures down to ‘market softness’ in some regions, but added a turnaround might come from Apple’s recently announced deal with IBM.
The deal involves businesses being be able to buy iOS devices equipped with IBM-enhanced enterprise software.
Despite poor iPad sales, the iPhone continued to do well with 35.2 million handsets sold in the past three months – an increase of 13 per cent, caused by a strong performance in China.
Lower-cost phones sold in China by up-and-coming rivals such as Xiaomi appeared to be grabbing market share mainly from other companies, chief Financial Officer Luca Maestri added.
‘We have a really good runway in front of us with China Mobile,’ Mr Maestri said, referring to Apple’s main carrier partner in the world’s number two economy.
‘Given our numbers in China, it would seem their success is coming from other Android devices.’
Mac desktop computers were the most popular product by the group in terms of growth, with 4.4 million sold, providing a year-on-year increase of 18 per cent.
Overall, the company’s quarterly profit rose 12 per cent to $7.75 billion (£4.55 billion).
Apple posted a smaller-than-expected six per cent rise in quarterly revenue, but revenue surged 28 per cent in greater China despite stiff competition.
Despite a surprisingly robust Chinese market, Apple continues to struggle in the more saturated, developed regions of the United States and Europe – its two largest markets.
The group iPhone typically sales tail off in the quarters before a new smartphone launch, as potential buyers hold off.
Figures also revealed a 36 per cent jump in research and development spending compared with the prior year, suggesting significant new products are on the horizon.
Customers are now eagerly anticipating the launch of the possible iPhone 6 – if that is what it will be called – in the next few months.
Analysts expect the company to introduce two iPhone versions this autumn, including a 5.5-inch model that thrusts Apple into the market for larger-sized phones popularised by rival Samsung and HTC.
But whether Apple can again produce a revolutionary new product, something it has been criticised for not doing since the iPad in 2010, remains the central question for investors.
Many expect Apple to make a play for the wearable device market with a smartwatch, dubbed iWatch or iTime.