Apple records slowest iPhone sale in quarterly result

According to analysts, the record revenue is a result of growth in the company’s services, against the slowdown in sales of its devices.

Apple executives painted the downturn as a momentary hiccup.

Cook also told media about the hope for the company.

In the December quarter, iPhone unit sales totaled 74.8 million, marginally above 74.5 million units that was achieved in the first quarter of fiscal 2015, but less than the consensus of 74.5 million. Tuesday’s report confirmed those fears. One of the reasons for the decline in numbers is because of the foreign exchange headwinds caused by the strong USA dollar. Demand for smartphones in China, a key growing market for Apple, has plunged, too.

“We’re seeing extreme conditions, unlike anything we’ve experienced before, just about everywhere we look”, Cook said, calling the global macroeconomic environment “challenging”.

The country’s smartphone sector has also recorded decline in past few months, curbing the companies’ growth rate.

Apple Inc. (Nasdaq:AAPL) was trading about 5 percent lower, at $95.01, Wednesday morning in NY.

The giant tech company is in no financial danger. Net profit was $18.4 billion, up from $18 billion a year earlier. Cook called it “the mother of all balance sheets”.

But Apple reported earnings of $3.28 per share, beating the average analyst estimate of $3.23 per share.

Overall this helped Apple deliver full-quarter revenues of $75.9bn, a two percent increase on the $74.6bn in Q1 2015. Unit sales typically drop over the next few quarters leading up to the next iPhone launch. He said the company’s shares will continue to feel the pressure if it doesn’t come up with a well-defined plan to improve sales or introduce a new product. Revenue in the “other products” category, which includes the Apple Watch and Apple TV, did see a 62% increase in revenue year-on-year, now bringing $4.3 billion to the table.

This means that Apple’s next iPhone model, which is expected to be unveiled later this year, could fuel another surge in sales. That could fuel another surge in sales. The camera on the iPhone is one of its best features and Apple has over 800 people working on it.

It saw its biggest growth in Greater China, with revenue jumping 14 per cent year-on-year and by nearly half (47 per cent) from the previous quarter to $18.373 billion (£12.85 billion).

“It’s disappointing to see them miss on an already downward adjusted sales number and the fact is that with their iPhone growth slowing what was needed was a product to be excited about”.