Apple opts for caution in light of falling sales

Apple reported lower sales and forecast a third straight quarterly revenue drop, dragged by slowing demand for iPhones amid a lacklustre global smartphone market and intensifying competition in China.

Fourth-quarter revenue will be $45.5bn-$47.5bn, Apple said last night. On average, analysts projected $45.5bn. A year earlier, sales were $51.5bn.

Gross margin in the period that ends in September will be 37.5% to 38%.