Apple quarterly profit slides 27 per cent to $10.6 billion

US stocks were mixed as Federal Reserve kicked off a two-day interest rate meeting and investors digested earnings.
Apple sold 40.4 million iPhones in the quarter ending June 25, down from more than 51 million a year earlier.
Apple sold 40.4 million iPhones in the quarter ending June 25, down from more than 51 million a year earlier.PHOTO: REUTERS

SAN FRANCISCO (AFP) - Apple said Tuesday (July 26) its quarterly profit slumped 27 per cent from a year ago to US$7.8 billion (S$10.6 billion) on a sharp drop in iPhone sales.

Apple sold 40.4 million iPhones in the quarter ending June 25, down from more than 51 million a year earlier, highlighting concerns over growth for the company's iconic smartphone and key profit driver.

It was the second straight quarter of slumping iPhone sales for the company, which until then had been seeing uninterrupted growth.

Overall revenue was down 15 per cent from a year ago at US$42.4 billion for Apple, which is the world's most valuable company.

Chief executive Tim Cook said the results showed "stronger customer demand and business performance than we anticipated at the start of the quarter.