Apple’s iPhone success may be reaching its peak

The announcement is expected to come with the company’s first quarterly sales earnings for the financial year 2015/16.

The aforementioned report claims the latter have bigger chances to make it to production because of one simple reason: Apple doesn’t want its new iPhone to feel outdated, as it has a bigger plan for it when the iPhone 7 hits the shelves.

Apple has reportedly cut back on iPhone production, and its Asian suppliers, like chip company TMSC and phone camera lens maker Largan Precision, have downgraded expectations for Q2 revenues.

The December quarter’s results also were impacted by a cooling Chinese market, which has emerged as Apple’s second largest, behind the Americas.

This will be the most important Apple earnings report in as long as we can remember. The iPhone 6S and 6S Plus which according to Reuters “experienced record sales when they were launched” are now facing weak demand. As the iPhone was one of the major contributors to the company’s economy, analysts believe that this fall in shares is a direct result of the stagnant sales of the smartphone.

Mac shipped 5.32 million units for $6.75 billion in revenue compared to last year’s 5.52 million units and $6.94 billion in revenue.

The company’s revenue follows the same pattern.

Sales of iPads saw a 56 percent drop in revenues and 25 percent dip in unit sales as the market for tablet computers cooled.

The upcoming smaller iPhone may also be released alongside the Apple Watch 2, although the firm has not yet confirmed this. The fact that a lot of users still possess iPhone 5s or are buying the iPhone even now, the new iPhone should find a lot of takers once launched.

Apple’s guidance for the March quarter implies iPhone sales of 45 to 50 million units in the March quarter, which would mark the company’s first-ever decline in sales of the gadget, said analyst Daniel Ives of FBR Capital Markets & Co.

Gross margin for the quarter was 40.1 percent compared to 39.9 percent in the year-ago quarter, with global sales accounting for 66 percent of revenue. The S range of iPhones tend to be refinements of what came before it instead of new devices, and some feel that more consumers are waiting for the next version, likely called the iPhone 7, to arrive.

Others say it’s premature to count Apple among former tech giants, like Hewlett-Packard, that have struggled for relevance as their pace of growth and innovation declined.