Computer and smart phone giant Apple has reported its first fall in profits for a decade, seeing a slide in year-on-year figures of around two billion dollars – the equivalent of 1.5 billion euros.
The company still made a net profit of over nine billion dollars (seven billion euros) for the second quarter but that is a fall of 18 percent.
Apple is under increasing pressure from the Android operating system and smartphone rival Samsung. Its pace of growth has slowed as high-end smartphone adoption approaches saturation in the developed world. It is also going head-to-head with increasingly aggressive rivals in developing countries such as China and India where cheaper models are more popular.
Although iPhone and iPad sales remained strong, the disappointing third quarter forecasts reflect concerns that Apple is running out of ideas to find the next break-through gadget.
That has been denied with Apple claiming to have new hardware and software services in the pipeline.
Chief Executive Tim Cook told analysts on a conference call that “some really great stuff” was coming in the fall and 2014. However that suggested the company would have no new products in the market for the next few months.
Sharing the wealth
The company also bowed to investors’ demands to share more of its $145 billion cash pile. A new expanded capital plan includes issuing debt for the first time to fund $100 billion in share repurchases and higher dividends until the end of 2015.
That doubles the amount from a programme set up last year and makes Apple the largest dividend-paying company in the world.
After the bell on Wall Street, Apple shares rose 3.8 percent.