This was the first holiday quarter for Apple’s newest products, the Apple Watch and iPad Pro.
Advertisement
Apple CEO Tim Cook said the company’s signature iPhones, Apple Watch and Apple TV products hit “all-time record sales”.
Cook called Apple’s services business “an unbelievable asset” for the company, and noted that Apple now has 1 billion “active” devices in use that can drive services sales.
This compared to a profit of $18 billion with revenue of $74.6 billion made for the same period one year ago.
An analyst at Mizuho Securities USA, Abhey Lamba said “they have other products, and have the potential to launch other products, but the hole left from an iPhone slowdown is too big to fill”. The company posted quarterly revenue of $75.9 billion and quarterly net profit of $18.4 billion, or $3.28 per diluted share. That marks the most profitable quarter of any single public corporation in history. This webcast will also be available for replay for approximately two weeks thereafter.
That would be its slowest growth ever and far from the double-digit growth that investors have come to expect. Mac sales also fell marginally from 5.52 million to 5.3 million, contributing revenues of $6.75 billion. The company sold 16.1 million iPad models in the first quarter, decline 25 percent year-over-year. Seeing as the iPhone accounted for 68% of Apple’s revenue in the quarter, that lack of growth is notable.
Daniel Ives, managing director at FBR Capital Markets, told ABC News that softness – that’s a saturation in smartphones on the market with fewer buyers – will be a challenge for Apple and its competitors. For the current quarter ending in March, Apple estimated revenue of $50 billion to $53 billion, lower than the $55.4 billion forecast by Wall Street and down from $58 billion recorded in the same quarter a year earlier.
Advertisement
All together, Apple said it took in $19.9 billion from services alone in its 2015 fiscal year, up 10 percent from the year before.
