Apple shares seen staying muted until iPhone 7 rings in growth

Apple reported growth in sales of the company’s flagship smartphone was the slowest year-over-year ever, ending a growth streak that began in 2007, when the original Apple iPhone was first introduced. However, it posted a record quarterly profit with net income growing 2 per cent year-on-year at Dollars 18.4 billion, while revenue was also up at USD 75.9 billion.

Also, the company generated $51.6 million revenue through its iPhone sales in the most recent quarter, increase one percent year-over-year and 60 percent quarter-over-quarter. “It’s the third largest smartphone market in the world, behind China and the US”, Apple CEO Tim Cook said on an investor call.

Along with record profits during the fourth quarter, Apple said its active installed base surpassed a billion devices for the first time ever. What’s unusual about that high this year, though, is it’s essentially the same as the sales peak Apple hit last year after the iPhone 6 and 6s were announced: 74.5 million iPhones.

Cook said the company is “putting increasingly more energy in India” and will continue to invest here for the long-term.

While it is a probably a bit worrying for Apple that they’re not doing as well as in previous years we do find it hard to feel sorry for a company that only made $1 billion more than it did last year.

“As the market for smartphones gets more and more saturated, Chinese demand is waning”. Analysts say the latest iPhone models aren’t providing the boost Apple needs to match the massive sales growth it enjoyed a year ago. Revenue in the Americas regions fell 4% year-on-year to $29.33 billion, and in Japan, revenue was down 12% to $4.79 billion.

Apple Inc. has estimated that its quarterly sales will drop for the first time since 2003.

Apple shares have slid 20 percent since a year ago on these concerns.

Because the iPhone is a dominant product, its sales dwarf the success or failure of any other product that Apple has released.

The second edition of the Apple Watch is expected to be revealed in September.

Apple said that it expected revenue in the current quarter to be between $50 billion and $53 billion.

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