Apple TV key driver in quarterly results

Apple today reported that the iPhone sales reached to 74.8 million in its first quarter of 2016.

Apple’s dominance in the mobile market is beginning to look fragile after the company’s fiscal first quarter earnings revealed underwhelming iPhone sales. Apple revenue in the Americas was $29.3 billion, Europe $17.9 billion, Greater China $18.4 billion, Japan $4.8 billion and the rest of Asia Pacific $5.4 billion.

Despite, the efforts of the company’s Chief Executive Officer Tim Cook to expand in China and broaden its offering range by launching new services and products like Apple Watch, its extreme reliance on iPhone exposes it to the threat of any slowdown in its demand.

We just heard that Apple had made record profits in their last financial quarter and whilst the company did not announce specific numbers on sales of the Apple Watch and Apple TV, these two devices made the company a lot of money. “In terms of VR, I don’t think it’s a niche”, the Apple CEO said in answer to an analyst’s question. The holiday shopping season is the most important time for Apple shortly after the launch of new iPhone models traditionally.

For the second quarter of 2016, Apple is projecting between $50 billion and $53 billion in revenue.

The disappointing figures came as no surprise to most – reports of a major slow down in supply chain orders for the iPhone 6s, indicating weak sales, have persisted through the winter – though Apple’s own forecast for the current quarter ending in March was startlingly downbeat.

Apple sold roughly as many iPhones during the last quarter of 2015 as it did during the same period in 2014, signaling a possible end to continual gains for the phone and a potential shift in Apple’s business and the smartphone market at large. Apple services, such as the App Store, iCloud and Apple Pay, increased to $6.05 billion in the quarter, marking a massive 26 percent increase year over year. Services accounted for United States dollars 6 billion. And the number stands at a whopping 1 billion devices which include iPhone, iPad, Mac, iPod touch, Apple TV, and Apple Watch devices.