Apple profits drop for second quarter as iPhone sales falter

APPLE has reported a second-consecutive fall in profits after sales of the iPhone continued to decline.

Last night the company reported a 27pc slump in quarterly profits and a slide in revenue, as it struggled to boost sales of the iPhone almost 10 years after it was released.

Apple also predicted that sales would fall in the next quarter, extending a prolonged decline in revenue that marks the biggest challenge to chief executive Tim Cook since Steve Jobs died five years ago.

However, shares rose by almost 7pc in after-hours trading since the results were better than expected.

Apple reported a 15pc decline in revenue to $42.4bn (£32.3bn) in the three months to June 25, while profits fell from $10.7bn to $7.8bn.

It sold 40.4m iPhones – a 15pc fall. However, Apple’s software and services divi- sion – which includes the App Store, iTunes and Apple Music – grew 19pc.

With sales of its hardware products dwindling, the company is pinning its hopes for growth on expanding its internet services arm.

Apple sold 9.95m iPads during the quarter, the lowest for five years, but revenues from the division grew as it sold more expensive models. Revenues from Mac computers and the “other” division, which includes the Apple Watch, fell.