Apple Posts Another Record Quarter, but iPhone Sales Flatten
Jan Dawson, chief analyst of Jackdaw Research, called the results "tough for Apple" because the figures show barely any growth for iPhone sales and for total revenue year-over-year. "Currency impacts seem to have been very significant, and that effect will hopefully soften over the coming quarters, but there's no doubting this is a tough set of results, and one of Apple's most disappointing sets of results in recent memory." Ironically, the numbers are only disappointing for Apple due to its usual sales successes, wrote Dawson. "Having said all that, the quarterly results (and even the results forecast for next quarter) are still astonishingly good on a stand-alone basis—most companies would kill for these numbers. But given the context of Apple's recent performance and growth, this is not what investors were hoping (though it is what analysts have increasingly been forecasting)." Another mobile analyst, Dan Maycock, said that though the figures are down for Apple, that the company is far from in trouble. "I think Apple has been down before, but they have a good deal of things in their pipeline so they'll be right back with the next major product release." Sales of iPhones "may have dipped, showing signs of saturation, with net new customers giving way to sales coming from upgrades, but no major rival has risen up to really challenge their place in the marketplace with any smartphone alternative being some years out," wrote Maycock. "Given that, I think they're in a fine position regardless of how much softness there is coming out of last year."
A year ago, Apple reported its then-best-ever quarter, posting $74.6 billion in revenue and $18 billion in net profits for the first fiscal quarter of 2015 due to a consumer frenzy of sales of its iPhone 6 and iPhone 6 Plus smartphones, Mac computers and sales of apps and more in the company's App Store. The $74.6 billion in revenue was a 30 percent increase over the $57.6 billion in revenue posted for the same quarter in 2014, while the $18 billion in net profit was up 37 percent from the $13.1 billion net profit that was posted in the same quarter in 2014.