Apple disappoints with flat iPhone sales
In the fiscal quarter Apple sold 74.8 million iPhones-a record, but only fractionally higher than the 74.5 million in the same period previous year and the slowest growth since the lifestyle-altering handsets were introduced in 2007.
More importantly, Apple has predicted that overall revenue will fall in the current quarter. Apple said on Tuesday that it sold 74.8 million iPhones during its fiscal first quarter, which ended December 26.
“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV”, said Tim Cook, Apple’s CEO.
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.
Other figures of interest: Apple sold 16.1m iPads in the final quarter of 2015, down from 21.4m a year before; but the company did provide a new stat.
Apple’s stock has been in a slump for months, as investors worry that the company won’t be able to duplicate last year’s growth in sales, which were in the double-digit percentages.
The technology giant’s revenue in China surged 14 percent to a record of $18.40 billion.
Apple forecast second-quarter revenue of $50 billion to $53 billion, below analysts’ average forecast of $55.5 billion. Its profit for the quarter was $18.4 billion, up by nearly $400 million year-over-year.
In an interview, Chief Financial Officer Luca Maestri said a strong dollar helped reduce revenue, as sales made with foreign currencies overseas convert into fewer dollars.
With Apple products coveted status symbols in India, just as in China, the company is “increasingly putting more energy” into India, citing a largely youthful population with rising disposable income as more people join the workforce.
The company’s shares, which have fallen 5 per cent this year, bounced around in after-hours trading in the United States and were down more than 2.6 per cent.
Apple is facing problems in its other products as well. Apple’s iPhone sales leveling off isn’t a sign of impending doom for the smartphone market, the iPhone, or Apple itself.
Let’s also not forget that Apple’s newest darling, the Apple Watch, is tied to the iPhone. Economic weakness emerging in China, one of its largest end markets, was the culprit.