While Apple recorded good financial figures, the company saw essentially no growth in iPhone sales compared to the same quarter past year. Apple sold 16,1 million iPads in the December quarter, a sharp 25% decrease from the comparable period, and 5,3 million Macs, a 4% decrease.
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All analyst eyes were also on Apple’s guidance for the next quarter, and the company confirmed rumours that it would suggest a drop in revenue – offering guidance that revenue for the second quarter of 2016 would be between 50 and 53 billion U.S. dollars, down from 58 billion in the same quarter previous year.
Apple’s revenue and profit managed to grow slightly relative to the same period a year ago despite declines in sales of several key products.
Looking ahead, Apple expects revenue to be down for this quarter, a first for the company in over 10 years. Back then, Apple was a fraction of its current size, reporting quarterly revenue of just $1.45 billion.
The iPhone maker’s gross margin was 40.1%, higher than the 39.9% in the year-ago quarter.
Analysts say that the slowing global market, especially the cooling economy in China, has brought a halt to Apple’s record history of increasing iPhone sales year-over-year since the smartphone’s debut in 2007.
Additionally, iPad and Mac sales fell year-over-year.
Analysts have long feared that Apple’s sales in China, one of its top two markets, would falter amid a broad economic slowdown.
Apple’s profits this quarter just barely beat the company’s first-quarter 2015 income, which set a historical milestone.
Growth in these areas is a positive for Apple, but the revenue generated pale in comparison to iPhone.
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.
Apple still remains heavily dependent on the performance of its smartphones, which account for more than 60 percent of its revenue.
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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.
