Apple beats earnings expectations but future iPhone sales raise concerns

However, there was iPhone sales growth of just 0.4 per cent, the slowest rate in the history of the Apple smartphone, and a huge drop compared to the 46 per cent growth in sales in the same quarter past year. For the current quarter ending in March, Apple estimated revenue of $50 billion to $53 billion, lower than the $55.4 billion forecast by Wall Street and down from $58 billion recorded in the same quarter a year earlier.

Cook attributed Apple’s “biggest quarter ever” to “all-time record sales of iPhone, Apple Watch and Apple TV” and the growth of Apple’s services, which includes Apple Music and its App store.

Chief executive Tim Cook credited “the world’s most innovative products” for delivering “Apple’s biggest quarter ever”.

Today, Apple announced yet another milestone during its earnings results for the first quarter: The iPhone manufacturer has a staggering 1 billion Apple devices that are actively being used around the globe.

Apple set a quarterly record for Apple Watch sales and expanded distribution to 12,000 locations.

The company also said that the revenue for its next quarter is expected to be between $50bn and $53bn, both of which lie below the $58bn figure reported in Q2 2015.

While iPad sales saw an increase from the previous quarter Apple tablet sales were down from the same holiday quarter a year ago.

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very hard macroeconomic environment”, Apple CFO Luca Maestri said.

Apple could halt a slowdown in phone sales with a new device launching this spring.

Compared to the same period in 2015, Apple posted figures of $74.6 billion and $18 billion, respectfully.

The giant tech company is in no financial danger. But the active number suggest that at least 1 billion devices, ranging from the Apple Watch and Mac, to the iPad and iPhone are in regular use.

According to the report, Apple had earned $31 billion in revenue from its installed service base in the fiscal year 2015 which was a 23 percent annual increase.

He looked ahead to the release of the next iteration of the iPhone: “Ultimately, it comes down to iPhone 7”.