Analysts had expected the company to sell 76.3 million units in this year’s first quarter, according to a poll by Fortune. That wasn’t the case this time.
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Overall this helped Apple deliver full-quarter revenues of $75.9bn, a two percent increase on the $74.6bn in Q1 2015.
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 expects second-quarter revenue between $50 billion and $53 billion, while the average analyst estimate had been for $55.61 billion.
“Apple has been in this position before, although pressure is building for Cook to show success outside its core iPhone DNA to give investors confidence”, says FBR Capital Markets analyst Daniel Ives.
Looking forward, there are more clouds on the horizon.
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.
The March quarter is likely to be the weakest this year in terms of iPhone sales for the company, which forecast on Tuesday its first quarterly revenue drop in 13 years.
“The fact remains that 2016 is year when Apple needs to come up with revolutionary rather than evolutionary product”.
“Major markets, including Brazil, Russia, Japan, Canada, Southeast Asia, Australia, Turkey and the Eurozone, have been impacted by slowing economic growth, falling commodity prices and weakening currencies”.
“In Q2 past year, the company recorded $58 billion in revenue – meaning Apple’s upcoming quarter could be the first negative growth quarter in recent memory”, TechCrunch noted.
Apple hasn’t commented on iPhone sales since last fall, when Cook struck an upbeat tone.
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Apple’s “Other Products” category, which includes the Apple Watch, saw revenue jump 26 per cent year-on-year to $6.056 billion (£4.23 billion), although unit sales were again not revealed. On the other hand, iPad sales dipped 25 percent and lost 56 percent in revenues.
