In an analysts’ call, Cook focused on new areas of growth, such as services like Music, Pay and iCloud for the 1 billion Apple devices that were used last quarter. The iPhone may still dominate Apple’s overall business – it accounted for 68 percent of revenue in Apple’s first quarter – and with the so-called iPhone 7 likely to launch later this year, it will continue to be the point on which Apple pivots. “They are going to have to figure out something else.” iPhone units are selling well but the flagship model is not driving the growth that the company needs.
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Sales of iPad tablets fell to 16.12 million from 21.42 million, while Mac sales slipped to 5.31 million from 5.52 million. Apple said on Tuesday that it sold 74.8 million iPhones during its fiscal first quarter, which ended December 26. While revenue in Greater China rose 14 per cent in the last quarter, Apple is beginning to see a shift in the economy, particularly in Hong Kong, Maestri told Reuters in an interview.
Apple said that it expected revenue in the current quarter to be between $50 billion and $53 billion.
Apple reported that revenue in China grew to a record $18.4 billion.
While the results are up from revenue of $US74.6 billion and net income of $18 billion in the year-ago quarter, Cupertino remained cautious for the year ahead, predicting that revenue will decline in the next quarter, the company’s first drop in years. It reported an earnings per share (EPS) of $3.28, topping analysts’ forecasts of $3.23.
As red-hot sales in China show signs of cooling, Apple Inc executives are touting India’s growing appetite for iPhones.
Shares of Apple (NASDAQ:AAPL) have plummeted almost 5 percent in the mid-day trading session on Wednesday.
Soaring sales of the iPhone fueled Apple’s ascendance into the world’s most valuable company, accounting for about two-thirds of the company’s revenue.
Cook’s reply: “No, I don’t think it’s a niche”.
With faster 4G coverage expanding, Apple has already asked Indian government for a license to set up its own retail stores just as the market seems to be turning in its favour. Sixty-six percent of sales were from outside the United States.
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“The company clearly has some headwinds”, Ives said.
