Apple Reports Over 1Billion Active Devices

But Apple said the decline is nothing more than a hiccup, and that it is working to broaden its product options.

However 74.8 million units were sold, generating $51.64 billion for the company – an increase of one percent.

Apple’s current iPhone 6s and iPhone 6s Plus smartphones were not able to dominate the comapany’s smartphone lineup during the holiday quarter to the extent that the iPhone 6 and 6 Plus did in the year-ago quarter, reports Reuters. Apple is also confronting an economic downturn in China, one of its biggest markets.

Elsewhere, Apple reported sales of 16.1 million iPads, a figure which also includes the iPad Pro, which went on sale on November 10.

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhones, Apple Watches and Apple TV”, Tim Cook, Apple CEO, said in a statement. It had $75.9 billion in revenue, an increase of 1.7 percent.

That’s according to financial results from the company’s first fiscal quarter, which ended December 26.

“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”, said J.J. Kinahan, chief strategist at TD Ameritrade.

Apple said earnings for another quarter will be between $50bn (GBP 34bn; Euro 46bn) and $53bn, below the $58bn it reported for the exact same period a year ago. Following the forecast, the shares of the company have fallen over 5 per cent this year. Greater China brought in $18.37 billion in revenue, while Japan brought in $4.79 billion.

Then there’s the expected launch of the iPhone 7 this fall, where investors hope Apple can restart growth.

Figures show that the company made $US4.3 million in that category, up from $US2.6 million in Q1 2015.

Apple has introduced new gadgets like a larger iPad for business users and the Apple Watch, along with new online services like Apple Pay, Apple Music and other apps.

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”.