Apple Posts Another Record Quarter, but iPhone Sales Flatten
Apple reported $75.9 billion in revenue in Q1 2016, but iPhone sales, at approximately 75 million units, were flat compared with a year ago.
Although Apple chalked up $75.9 billion in first-quarter revenue, a new record for the company, its sales of 74.7 million iPhones—little changed from the 74.5 million sold in the same quarter a year earlier—has analysts concerned. The $75.9 billion in revenue for the company's fiscal 2016 first quarter, which ended Dec. 26, is up 2 percent from $74.6 billion in the same quarter one year ago, while the company's net income of $18.4 billion, which set another quarterly record, rose from $18 billion one year ago. Earnings rose to $3.28 per diluted share, up from $3.06 in the same quarter a year ago. "Our team delivered Apple's biggest quarter ever, thanks to the world's most innovative products and all-time record sales of iPhones, Apple Watches and Apple TV," Tim Cook, Apple CEO, said in a statement. "The growth of our services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of 1 billion active devices." Apple reported that $29.3 billion of its first-quarter revenue was generated in the United States, with another $17.9 billion coming from Europe. Greater China brought in $18.37 billion in revenue, while Japan brought in $4.79 billion. The remaining $5.4 billion came from the rest of the Asia-Pacific market, according to the company.
First-quarter sales of iPads dropped to 16.1 million units from 21.4 million in the same quarter one year ago, while Mac sales slipped to 5.3 million this quarter, compared with 5.5 million one year ago.