The news was preceded by weeks of dark predictions, with media reports claiming Apple had cut manufacturing orders from the companies that build the iPhone because inventory of the smartphone was backing up in retail channels.
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Despite the fact that AAPL posted a record $18.4 billion in net income on revenue of $75.9 billion in the latest quarter, it is no longer benefiting as much from the rapidly growing smartphone users across the globe. The company said it sold 74.8 million iPhones in the quarter ending December 26. He added, “The growth of our services business accelerated during the quarter to produce record results”.
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.
The company also said that the revenue for its next quarter is expected to be between $50bn and $53bn, both of which lie below the $58bn figure reported in Q2 2015.
So, now that the dust is settling following the initial reaction to Apple’s quarterly results and outlook, the question of “what’s next?” is facing Cook and Co., Apple customers and those investors, who have seen Apple’s stock price fall by nearly 29 percent since the shares reached a 52-week-high of $134.54 last April.
Despite Cook’s upbeat take on the rest of Apple’s business, the company may now be scrambling to boost iPhone sales with its most traditional consumer base.
In a statement, Apple said that they have sold 74.8 million iPhones in first quarter of the fiscal.
Those figures helped the Cupertino company hit a major milestone – one billion active devices, including iPhone, iPad, Mac, iPod touch, Apple TV, and Apple Watch.
To underscore the point, Apple launched Apple Pay and Apple Music services on the Chinese mainland in 2015. Apple’s revenue dropped to the low side of its guidance released in October, which put revenue projections at $75.5 billion to $77.5 billion. For the coming quarter, Apple projected revenues between $50 billion and $53 billion, down from the $58 billion it made in the first three months of 2015.
But it’s not all good news for the California tech giant.
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CEO Tim Cook acknowledged the affects of turbulent global markets on economic growth.
