Apple Q2 2016 financial results show first ever YoY fall in iPhone sales

Apple's 2016 Q2 results (that's the quarter ending in March) are out showing a revenue slowdown for the company. Quarterly revenue was $50.6 billion compared to $58 billion for the same period last year. As a result, net income is also down to $10.5 billion from $13.6 billion from Q2 2015.

The reason behind the revenue decrease are the lower iPhone, iPad and Mac sales. iPhone sales declined by 16% compared to Q2 last year (first YoY drop in the iPhone history) from 61.2 million to 51.19 million units. This lead to a drop in revenue of north of $8 billion or 18.42% (from $40.28 billion to $32.86 billion).

Apple expects this trend to continue in the next quarter. According to the company the iPhone 6 and iPhone 6 Plus enjoyed incredibly high demand due to their larger displays, and it's hard for the "S" versions to keep up.

In the Americas, Apple's revenue fell by 10%, while in China and in Asia Pacific by a noticeable 26% and 25%, respectively. It's not all bad, as in Japan revenue grew by 24%.

The iPad sales continue to decline - they've dropped by 19%, from 12.60 million units to 10.25 million units. Macs saw the smallest drop at 12%, from 4.6 million units to 4.03 million units.

Here's how Tim Cook commented on the quarter results.

Our team executed extremely well in the face of strong macroeconomic headwinds. We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.

As you may know, the company includes the Apple Watch, Apple TV, iPod and Beats headphones into the "Other Products" category. It managed to grow by nearly 30% from $1.69 billion to $2.19 billion. Apple CFO Luca Maestri hints that most of that growth is attributable to the Apple Watch.

Apple's expects revenue and profit margin to continue their decline in the upcoming quarter. Revenue is expected to be in the $41-$43 billion range and profit margins between 37.5% and 38%. For reference, in Q3 2015, Apple made $49.6 billion in revenue.

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