For those who came in late Apple is entirely dependent on its iPhone because it can’t come up with anything new. However Apple saw less than a percentage growth and predicted a fall in sales.
This was Apple’s first revenue drop in 13 years and according to Tim Cook it is not going to be its last.
Apple sold 74.8 million iPhones in its fiscal first quarter, ended December 26, the first full quarter of sales of the iPhone 6S and 6S Plus. The 0.4 percent growth in shipments was the lowest since the product was launched in 2007. In the same quarter last year Apple sold 61.2 million iPhones.
IPhone sales were expected to fall for the current quarter compared with the same quarter last year, Chief Executive Officer Tim Cook said.
Apple forecast second-quarter revenue of $50 billion to $53 billion, below analysts’ average forecast of $55.5 billion. In the same quarter last year Apple reported revenue of $58 billion.
J.J. Kinahan, chief strategist at TD Ameritrade was quoted as saying “Pressure on the shares will continue without a well-defined plan to grow sales or a new product.”
Apple Chief Financial Officer Luca Maestri told Reuters that revenue in Greater China rose 14 percent in the last quarter, Apple is beginning to see a shift in the economy, particularly in Hong Kong, which indicates that China will go pear shaped.
“As we move into the March quarter it’s becoming more apparent that there are some signs of economic softness,” Maestri said. “We are starting to see something that we have not seen before.”
Revenue increased 1.7 percent to $75.87 billion, both records for the company. Analysts had expected revenue of $76.54 billion and even that was considered an optimistic figure.