Apple has reported its first-quarter earnings for the 2016 financial year, reporting record-breaking earnings.
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Apple signalled that the iPhone would see its first ever decline in sales in the current quarter, after growth was reduced to a rounding error in the three months to December.
And sell devices, it did: its iPhone line shifted 74.8 million units during the period; that was barely a change from a year ago, however, when the company shipped 74.5 million units. Apple sold 16.1 million iPads during the quarter, down from 21.4 million in the same period previous year. As it has since its wearable launched, Apple folded Watch sales into the “other products” category, which includes the iPod, Apple TV, Beats headphones, and other accessories.
Apple is said to be working on new, smaller, lower-cost iPhone, dubbed the iPhone 5se, in an effort to reach a broader market and kickstart iPhone sales once more.
Apple forecast revenue of between $50 billion and $53 billion for its March quarter. Earnings exceeded analyst forecasts of $3.23 per share. According to CNET, this would be Apple’s first year-over-year quarterly decline in a decade. Analysts expected Apple to sell more – between 75.4 million and 77 million iPhones, depending on who you asked.
The tech giant’s services revenue increased 15% to $5.5 billion and installed base related revenue rose 24% $8.9 billion during the quarter.
Apple reported its fiscal Q1 2016 earnings on Tuesday and the numbers are important.
McGregor said Apple faces the same market challenges as all other smartphone vendors-the high end of the market is saturating, while the low end of the market is growing. But the active number suggests at least 1 billion devices – from the Apple Watch and Mac to the iPad and iPhone – are in regular use, communicating with the App Store and checking in with iCloud.
Apple has reportedly cut back on iPhone production, and its Asian suppliers, like chip company TMSC and phone camera lens maker Largan Precision, have downgraded expectations for Q2 revenues.
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The company’s stock ($AAPL) stock wasup 0.5 percent at market close.
