Apple Computer is reporting lower iPhone and iPad sales for the first time in years, as the company continues to battle the fallout from its decision to sell off a controlling stake in Chinese tech giant Alibaba.
The company reported its lowest revenue per user in seven years, and the lower-than-expected profit per user for the iPhone and tablet models is being attributed to the launch of the iPhone 7 and iPhone 7 Plus.
Analysts surveyed by Reuters had expected the sales figures to be much lower.
Apple reported revenue of $5.7 billion for the quarter, down $0.2 billion from the same period a year earlier.
Apple’s revenue was up 15% from a year ago, but the company said it expects revenue to drop again as the iPhone 6 and 6 Plus launch.
The iPhone 7 will be Apple’s first smartphone to come in a black color and a larger version of the operating system, iOS 11.
The iPhone 7 is expected to go on sale in September.