Apple stocks drop drastically as sales and revenue decline

Just two days ago, Apple's sales for all devices were showed to have gone downhill as the company reported its earnings for the second quarter. With a huge difference from last year, it hasn't been a good quarter for Apple. After 13 years of constant growth in sales, Apple took a big hit last Tuesday as stocks dropped by a massive 8 percent in a single day.

The sales report is as follows:

The iPhone 6S and iPhone SE

- $50.6 billion in revenue, compared to $58 billion a year ago and an expected $52 billion
- $1.90 per share, compared to estimates of $2
- iPhone sales 51.2 million units, compared to 61.2 million a year ago
- iPad sales: 10.3 million units, compared to 12.6 million a year ago
- Mac sales: 4 million units, compared to 4.6 million a year ago

Even though the results were disastrous to the company, CEO Tim Cook still managed to stay positive about the whole situation. He noted that a large percentage of iPhone users switched from other smartphones like Android, and said that the business is still healthy. For the last six months, Apple has seen more switchers from other smartphones than any other half-year period. And many of the iPhones sold are going to first-time buyers, too; iPhone sales in India grew 56 percent this last quarter.

Despite the drop in sales, Apple's services business is still going strong. The services department of Apple, including the App Store, iTunes Store, Apple Pay, iCloud, and others, have made a $1 billion profit compared to results from a year ago. Cook also stated that App Store revenue increased 35 percent over the year, and Apple Music subscribers now reach over 13 million. Other products by Apple are also steadily growing. Products such as the Apple Watch, Apple TV, and Beats products have been increasing in sales over the recent period of time. Revenues for this department are estimated to be $2.2 billion, although we don't know exactly how many Apple Watches the company has sold.