IPhone sales flatline, as decline predicted

Apple said that it expected revenue in the current quarter to be between US$50bil (RM212.79bil) and US$53bil (RM225.56bil).

Analysts, technology blogs and company watchers say the iPhone 7 could include waterproofing, wireless headphones and use its new force touch technology to kill off the home button. But the active number suggest that at least 1 billion devices, ranging from the Apple Watch and Mac, to the iPad and iPhone are in regular use.

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. The $75.9 billion in revenue for the company’s fiscal 2016 first quarter, which ended December 26, is up 2 percent from $74.6 billion in the same quarter one year ago, while the company’s net income of $18.4 billion, which set another quarterly record, rose from $18 billion one year ago.

Moreover, Apple’s forecast for its revenues is also not encouraging which is expected to decline for the first time in 13 years on the year-to-year basis.

Revenue in the first three months of the year will be $50 billion to $53 billion according to company guidance which is well below analysts’ estimates for $55.5 billion.

The launch of the iPad Pro helped Apple reporting 63 percent growth from the last quarter.

Apple CFO Luca Maestri said: “Our record sales and strong margins drove all-time records for net income and EPS in spite of a very hard macroeconomic environment”, said Luca Maestri, Apple’s CFO.

It saw its biggest growth in Greater China, with revenue jumping 14 per cent year-on-year and by nearly half (47 per cent) from the previous quarter to $18.373 billion (£12.85 billion). During the quarter, the company sold 74.8 million iPhones, 16.1 million iPads, and 5.3 million Macs.

Tech giant Apple has seen its slowest growth ever and far from the double-digit growth investors have come to expect as the new iPhones face tough competition from their earlier versions.