Apple’s revenue drops for the first time in 13 years

Apple has experienced a significant drop in its revenue for the second quarter owing to a fall in sales. This is the first time the company has had a dip in sales since 2003.

The tech-giant has reported its second fiscal quarter sales as $50.56 billion, a plunge from last year’s $58 billion. The quarterly profits also declined from $13.5 billion to $10.5 billion, marking a drop of 22.5 percent.

Also, the company sold only 51.2 million iPhones during the period, a major decline given during the same quarter last year, the Cupertino-based company had reported selling 61.2 million iPhones.

The brand’s popularity in China also seems to be on the decline. The country, which is Apple’s second biggest market following the United States, reported a staggering drop of 26 percent in sales.

Subsequently, the iPhone-maker’s share price has taken a hit too. After the earnings report, Apple’s shares dropped 8 percent in after hours trading. Over the last 12 months, the share price has plummeted by 20 percent.

Apple had predicted the decline about three months ago and assured its investors it will be nothing more than a momentary roadblock.

With the recent downfall in sales across the cell phone market, companies like Apple are banking on new innovation to boost their revenue. Last week, rumors had surfaced of Apple working on the iCar in Germany.