Apple Inc Misses Estimates on Sales, Revenue, but Profit Sets Record

The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share.

Based on reports, Apple sold 74.8 million iPhones in the first quarter of 2016, which missed projections of 75.46 million iPhones sold.

Tim Cook, Apple CEO, said the results represented a “huge accomplishment”, given “the turbulent world around us”, on an earnings call transcribed by Seeking Alpha.

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.

It didn’t hurt that the company that Steve Jobs built sold a record 74.8 million iPhones during the fourth quarter, not to mention 16.1 million iPads, and 5.3 million Macs.

Apple’s latest financial results revealed the lowest iPhone growth since the device debuted, but the Cupertino firm does have one thing to celebrate.

“The iPhone has always been the main growth driver of the company, with iPad sales stalling, and if that engine starts to slow down it does not bode well for its future performance”, TechCrunch said. Sales of the iPad tablet dropped 25 percent from a year earlier in terms of units, while Mac computers declined 4 percent.

The iPhone may still dominate Apple’s overall business – it accounted for 68 percent of revenue in Apple’s first quarter – and with the so-called iPhone 7 likely to launch later this year, it will continue to be the point on which Apple pivots.

During the Q2 2015, it had predicted $58 billion in revenue for the next year but now it has pegged that number to be anywhere between $50 and $53 billion in revenue.

Meanwhiles, investors not only worry about a slowdown in iPhone sales, but whether Apple can pull off similar magic with a new consumer device. However, the company still boasts an impressive profit of $18,4-billion.

With respect to Apple’s cash position, Apple CFO Luca Maestri said that the company “generated operating cash flow of $27.5 billion during the quarter”.