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Apple Sees First Sales Crisis In More Than A Decade

At the end of March 2015 Apple reported quarterly revenue of $58 billion, projections for the second quarter of this year peg revenue between $50 billion and $53 billion, a drop of about 8.6%.

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However, this was in line with company’s expectations after iPhone sales – the driver of two-thirds of Apple revenue – had peaked and that the company will soon need to find new sources of growth.

Apple posted $18.4 billion in earnings with revenue of $75.9 billion, which beat the $18.22 billion profit projections by analysts but fell short of the revenue projection of $76.67 billion.

The final quarter of 2015 provided another financial record for Apple, but only just.

Based on reports, Apple sold 74.8 million iPhones in the first quarter of 2016, which missed projections of 75.46 million iPhones sold.

During the release, Cook explained, “Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch, and Apple TV”.

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.

Kent German, from consumer technology website CNET, said: “Apple had a record quarter profit past year – any other company would be jumping up and down”.

Apple reported growth in sales of the company’s flagship smartphone was the slowest year-over-year ever, ending a growth streak that began in 2007, when the original Apple iPhone was first introduced.

With the slump Apple is suffering from right now, it has pointed its fingers to a stronger dollar and the economic slowdown in one of its largest consumers, China. Year over year, Mac sales were down 4% while iPad sales were down 25%.

In addition, Apple revealed that its active install base had reached one billion devices.

But it’s not all good news for the California tech giant.

But Mr Cook said the firm still planned to keep investing in smartphones.

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The devices are part of the iPhone series and were announced on September 9, 2015, at the Bill Graham Civic Auditorium in San Francisco by Apple Inc.

Sales Decline Forecasted For Apple