iPhone sales decline year-on-year in Apple's fiscal Q2

Apple has released its financial results for its fiscal second quarter, and the champagne is staying in the bottle today. The company made $10.5 billion in net income on $50.6 billion in revenue. Those numbers are down from the $13.6 billion in net income and $58 billion in revenue the company took in during the same quarter a year ago. Gross margin fell a bit to 39.4%, down from 40.8% a year ago.

They say all good things must come to an end, and Apple's long record of skyrocketing iPhone sales appears to have reached its peak. The company sold 51.2 million iPhones this quarter, down 16% from the year-ago quarter. Phone sales generated $32.8 billion in revenue, down 18% from this time last year.

The iPad didn't take up any of that slack. Apple sold 10.2 million iPads last quarter, down 36% sequentially and 19% year-over-year. The product line took in "just" $4.4 billion. Mac sales also experienced declines. Apple moved 4 million Macs last quarter, down 12% from a year ago. Macs generated $5.1 billion in revenue, a decline of 9% year-on-year.

The two bright spots in Apple's report are its services revenue and "Other Products" revenue, where the Apple Watch presumably records its results. The company's services generated $5.9 billion in revenue, up 20% from a year ago, while the $2.2 billion generated by "Other Products" is up 30%.

For the third quarter of its fiscal 2016, Apple expects revenue between $41 billion and $43 billion and a gross margin between 37.5% and 38%.

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