Though the company continued to be extremely profitable during the December quarter, with record net income of $18.4 billion through sales of $75.9 billion in the December quarter, Apple’s advantage from the accelerated adoption of smartphones across the globe is reducing.
Apple is used to being the overachieving popular kid in Silicon Valley, but the iPhone maker is about to face its most hard quarter since the first iPhone was announced, after the company forecast a decline in sales.
As expected, Apple didn’t announce specific Apple Watch or Apple TV sales figures, instead choosing to place the sales figures for both devices in the “Other” category.
Apple sold 74,8-million iPhones during the last quarter, which is less than 1% more than the number of iPhones it sold a year ago. Revenue increased 1.7% to US$75.87bn, both records for the company. The quarterly sales shows 0.4 percent growth from the 74.5 million units that the Cupertino giant had sold in the same quarter previous year.
Tim Cook, CEO of Apple, in a statement explained that Apple’s services business and its growth lead to the acceleration for the quarter which produced record results. While we may have hit peak iPhone in sales, rest assured, you’re not going to stop seeing them any time soon. The company projected its revenue for Q2 2016 would be between $50 and $53 billion, lower than pessimistic Wall Street predictions and down from $58 billion the same time past year.
That slow growth and Apple’s projection for the current quarter, which ends in March, is sure to have investors anxious. “Major markets, including Brazil, Russia, Japan, Canada, south east Asia, Australia, Turkey and the eurozone have been impacted by slowing economic growth, falling commodity prices and weakening currencies”.
Apple has shipped more than a billion devices in the past: the company sold its billionth iOS device back in November 2014.
Apple will provide live streaming of its fiscal Q1 2016 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.