Record quarter for Apple TV

Cook called Apple’s services business “an unbelievable asset” for the company, and noted that Apple now has 1 billion “active” devices in use that can drive services sales.

Revenue for the quarter ending December 26th stood at $75.9bn, an increase on $74.6bn for Q1 2015.

But Apple, which Tuesday posted record quarterly profit despite the iPhone faltering for the first time since it was launched in 2007, remains optimistic about the overall smartphone market. For the coming quarter, Apple projected revenues between $50 billion and $53 billion, down from the $58 billion it made in the first three months of 2015.

Many analysts were expecting iPhone sales to be higher than the numbers announced, Apple managed to slightly increase sales of their most popular product over the same quarter in the previous year. Greater China brought in $18.37 billion in revenue, while Japan brought in $4.79 billion. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter and worldwide sales accounted for 66 percent of the total quarter’s revenue. Apple also announced that it sold 74.8m iPhones, 16.1m iPads and 5.3m Macs over the holidays.

Apple has reported record quarterly revenues yet again, as a rumoured decline in iPhone sales failed to materialise and income from services and other products like the Apple Watch offset any problems elsewhere.

Indeed, Apple’s annual revenue growth in China slowed to 14% during the quarter, compared to growth of 70% a year ago. This would be its first decrease in sales in more than a decade as the company reported the slowest-ever growth in iPhone shipments which implies that company’s unprecedented run of growth is history.

Based on reports, Apple sold 74.8 million iPhones in the first quarter of 2016, which missed projections of 75.46 million iPhones sold. “We have now completed $153 billion of our $200 billion capital return program”.

Two thirds of Apple’s revenue is now generated outside the U.S., Cook explained, “so foreign currency fluctuations have a very meaningful impact on our results”.