Apple TV Posts Record Sales in Q1

IPhone sales boomed a year ago after the introduction of larger-screen models in late 2014, but Apple’s newest iPhones incorporate fewer noticeable changes and haven’t ignited as much enthusiasm among consumers.

The slowdown comes as Wall Street analysts worry the company does not have another blockbuster product to replace the iPhone. Apple was the only PC manufacturer among the top five to post year-over-year improvement in sales, Gartner says.

Apple has struggled to get a highly anticipated streaming TV service off the ground. The company was not projecting figures beyond those months, he said.

However, its CEO Tim Cook allayed fears, saying “Our financial position has never been stronger” and that Apple had “the mother of all balance sheets”.

We will be listening to the investor relations call for further clarification. “I’m so convinced that the things we are doing is right and the assets we have are enormous”.

The California-based technology giant posted a profit for the quarter ending December 26 of 18.4 billion USA dollars, having sold 74.8 million iPhones in the three-month period. Researchers, including Strategy Analytics and IDC, predicted Apple’s first-quarter worldwide shipments would fall short.

Apple said that it expected revenue in the current quarter to be between US$50 billion and US$53 billion. In Q1, Apple reported sales of 74.7 million iPhones, which is just barely better than the 74.5 million it did in the same quarter previous year.

Both revenue and net income broke records, but again with a very small growth rate: $75,9 billion in revenue, a 2% increase, and $18,4 billion in net income, around 1,7%. Basic earnings per share for the quarter were $3.30.

Cook noted that 2/3 of Apple’s revenue is now generated outside the US, making foreign currency fluctuations a key factor in the company’s results. Apple suppliers have already indicated that Apple is heading for a boring market conditions.

Overall, the company said the overall number of active devices has reached 1 billion, including Apple Watch and Apple TV. Apple isn’t necessarily a company that targets emerging markets with low-priced devices, which are areas where Android and even Windows Phone flourish; and, higher end markets are getting saturated with smartphones.