The company announced a “record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion”.
Advertisement
Apple sold a record 74.8 million iPhones during the quarter, which includes the busy holiday shopping season, up only 300,000 units from 74.5 million a year earlier.
On the devices side, iPhone sales continue to grow, albeit at a much slower pace from 74.5 million units to 74.8 million year-over-year.
Tim Cook, CEO of Apple, in a statement explained that Apple’s services business and its growth lead to the acceleration for the quarter which produced record results.
The company’s shares have fallen 11.5% in the a year ago going into Tuesday’s earnings report, with several of Apple’s suppliers warning of soft demand for new iPhones.
iPhone growth in the just-announced first fiscal quarter of 2016 was the slowest since the smartphone’s introduction in 2007.
Apple has revealed that the active user base has grown to one billion.
He said he believes investors will pin their hopes to the likely release of a new iPhone in September, a pattern Apple has followed over the past few years.
“Cook & Co have a few tough quarters ahead until we get to the buildup around iPhone 7 later this year, which is what bulls are focussed on to turn this ship back into growth waters”, FBR & Co analyst Daniel Ives said.
Sales of iPads saw a 56 per cent drop in revenues and 25 per cent dip in unit sales as the market for tablet computers cooled.
Gross profit margins rose by two percentage points, to almost 40 percent, compared to the last three months of 2014, indicating that profits were boosted by factors other than sales, such as higher prices or lower production costs. Meanwhile, Apple’s quarterly profits checked in at $18.4 billion while EPS for the quarter checked in at $3.28, easily besting the consensus on Wall Street. Apple also forecast sales of $50 billion to $53 billion for the second quarter, below the $55 billion analysts predicted.
Advertisement
Its results were boosted by an upswing in services revenue which was at $6.1bn, up 15 per cent year on year, thanks to a strong growth in its apps.
