Apple just announced its worst quarter in over a decade.
On Tuesday afternoon, Apple reported that its sales and profit both fell last quarter — a rarity for a company that has been growing at a rapid pace, even as it has become the largest technology company on the planet.
The last time Apple’s sales fell year over year was the first quarter of 2003. At that time, the PowerMac was still the company’s bestseller. Apple had sold a grand total of 611,000 iPods. And Apple hadn’t yet launched the iTunes Music Store.
Now, more than two-thirds of Apple’s revenue is made up of iPhone sales. So where the iPhone goes, so goes Apple — and last quarter was a miserable one for Apple’s signature gadget. IPhone sales fell for the first time in history.
But ever-sinking iPad sales and flat-lining Mac demand didn’t help Apple’s case either. Neither did a strong dollar and a very weak Chinese market.
“We had a very busy and challenging quarter,” CEO Tim Cook said on a conference call with investors. “Despite the pause in our growth, the results represent excellent execution by our team in the face of strong macroeconomic headwinds.
“Wall Street analysts had predicted that Apple would have a somewhat lousy quarter. But they didn’t think it would be quite this bad.
Apple’s stock plummeted 8% in after-hours trading, to below $100 a share.