Tim Cook blames escalating iPhone 8 leaks for fall in iPhone sales

Apple on Tuesday (2 May) reported a minor drop in iPhone sales for its most recent quarter. Apple CEO Tim Cook blamed the decline in iPhone sales on growing leaks about future models. Although iPhone sales dropped from 51.2 million units in 2015 to 50.8 million units, the tech giant still made more money, thanks to increasing demand for the pricier iPhone 7 Plus.

"We are seeing a pause in purchases of the iPhone due to earlier and much more frequent reports about future iPhones," Cook said, according to a report by the New York Post. Apple has long had to contend with product rumours, which have in the past factored in Apple's sales.

For instance, people looking to get a new smartphone in July may hold off on making a purchase, if rumours of a significant update to a newer model is reported and predicted to be out for September. Reports suggest that hints about smaller updates can also lead to people refraining from buying a current model or even push them to switch to an Android phone.

There has been major speculation surround the upcoming iPhone 8 model, which is expected to come with major changes and updates. The model will mark Apple's 10<sup>th anniversary. The model is expected to be out this fall.

However, all is not lost for Apple. Cook reportedly deemed the iPhone 7 Plus demand as "robust", acknowledging that the firm didn't accurately predict how people would go for the bigger model over the iPhone 7. He also said in a statement that the firm has noted "great customer response" to both models of the new iPhone 7.

"It took us a little while to adjust all the way back through the supply chain and to bring iPhone 7 Plus [availability] into balance, which occurred ... early this past quarter," Cook said, CNet reported.

How did Apple sales do for other products?

Apple iPad sales also saw a drop from 10.34 million units last year to 8.9 million sold this year. However, CNet reports that this was in line with what analysts expected. Apple's Mac sales, which saw 4.2 million sold also reportedly adhered to analysts' expectations.

Older model iPhones, however, did not do well. "Where the iPhone 7 Plus did well, we didn't perform as well on some of the previous generation iPhones," Cook said. "What I now believe is that we'll improve a bit more during this current quarter, not back to growth but improve -- but make more progress."

Apple sales in China have also dropped 14%, while revenue from Europe and US was up. Cook reportedly blamed a 5% for the sales drop in the Chinese market. He said that the firm continued to be "very enthusiastic" about China but acknowledged that sales will likely not rebound this quarter.

Meanwhile sales from Apple's other products such as iPods, Apple Watch, AirPods, Beats headphones and other accessories rose by 31% to $2.87bn (£2.22bn).