Apple sold more than 51 million iPhones in the first three months of this year—and that's the problem. That's 10 million fewer iPhones than the tech giant sold during the same quarter a year ago, its first year-over-year decline in iPhone sales. As a result, Apple on Tuesday reported its first drop in quarterly revenue since 2003—when the iPod was still relatively new and the iPhone didn't exist. Since then, the iPhone and other products have propelled the company's stock value from $5 billion to $579 billion, making it the most valuable public company in the world. The slide is putting more pressure on Apple and CEO Tim Cook to come up with its next big product. Cook, of course, has problems many corporate bosses would love to have, reports the AP. Despite the decline in sales, Apple managed to rack up $10.5 billion in profit for the quarter.
But Apple is battling perceptions that its latest iPhones aren't that different from previous models, at a time when overall smartphone sales are slowing around the world; nearly two-thirds of Apple's $50.6 billion in quarterly revenue came from iPhones. Overall, the company's revenue in the January-March quarter was down 13% from a year earlier. And the company surprised analysts by forecasting another revenue drop of 13% or more in the current quarter. Analysts are expecting Apple's performance to improve in the fall, when it's expected to release the next generation of iPhones with as-yet undisclosed new features. The forecast, which was announced after Apple had closed for the day at $104.35 a share, drove its stock price down 8% in extended trading. (Read more Apple stories.)