Leading up to Apple’s earnings announcement, analysts were anticipating Apple’s quarterly revenue to check in at $76.6 billion, with quarterly profits and EPS checking in at $18.2 billion and $3.23, respectively.
Advertisement
“But for the first time we’re seeing iPhone growth slowing which reflects something going on in the whole market”. Shares of Apple are down more than 11 percent over the previous year.
China accounts for almost a quarter of Apple’s revenue, more than all Europe combined. This would be its first decrease in sales in more than a decade as the company reported the slowest-ever growth in iPhone shipments which implies that company’s unprecedented run of growth is history.
“Our installed base recently crossed a major milestone of one billion active devices”, said Cook. It’s not clear yet what will drive that decline, but it seems likely that iPhone sales and currency impacts may be at least partly to blame.
Apple has announced its earnings report for the first quarter of 2016, and it’s an outcome that goes in two directions.
The company reported sales of “other products” – including the smartwatch and Beats music products – was $4.35 billion (nearly Rs 29,379.9 crore) in the past quarter but did not break down those figures.
Apple forecasts that its total revenue in Q2 2016 will be between $50 and $53 billion, compared to $58 billion in the year-ago quarter, signaling the company’s first year-over-year drop in revenue in thirteen years.
From iPhones to iPads to Macs to Apple Watches, the number of gadgets syncing with Apple’s services increased by a healthy 25%, year-over-year. Meanwhile, its iPhone sales were mainly flat, with it selling 74.8 million units, a rise of 300,000 units year on year.
The iPhone manufacturer’s “other products”, which include devices like the Apple Watch and Apple TV, alone saw a growth of 62% and sales reached to $4.3 billion in the last quarter alone.
Advertisement
Sales of iPad tablets fell to 16.12 million from 21.42 million, while Mac sales slipped to 5.31 million from 5.52 million.
