Apple hits new quarterly profit heights as iPhone sales plateau
Apple’s latest financial figures are in, and to the surprise of no one, the company’s once again bringing in a boatload of money. And while no one’s been expecting Apple to suddenly stop being profitable, over the last few months we’ve heard all sorts of warnings that the party may be cooling off a bit for unchecked growth, and Apple could soon be looking at a situation where some of its key sales started approaching previously invisible ceilings. Based on the data Apple’s making available, that appears to very much be the case, and growth in multiple sectors has slowed down, if not outright reversed course.
Let’s start with the big numbers: Apple brought in some $75.9 billion in quarterly revenue, generating profits of $18.4 billion – the company’s best quarter to date.
If Apple’s making all this money, where’s the problem? Well, iPhone sales are pretty stagnant compared to the same period a year ago, climbing just 0.4 percent to 74.8 million units. Tablet sales are in appreciably worse shape, and even the introduction of the iPad Pro couldn’t help prop things up – Apple’s down 25 percent since last year.
Apple is seeing some solid growth in product categories like the Apple Watch and Apple TV, and while not every international market’s seen strong revenue, sales in China appear to be experiencing good momentum. Apple also saw success with its various services, including the new Apple Pay.
While not directly tied to this earnings report, Apple shares word of an important milestone the company’s recently reached, with over one billion active devices out there.
Finally, we look at what’s next for Apple, and the company offers investors a warning: expect a dip in revenue. Specifically, Apple’s forecasting income next quarter of between $50 and $53 billion, down from $58 in the same period of 2015. Is this going to be the way things keep going from here on out, or can Apple find a way to expand sales to even more users? Maybe with a new, more affordable iPhone option?