Apple Inc. (AAPL) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. 

Apple Inc. (AAPL) Q1 2016 Misses On iPhone Sales, Revenue, But Sets $18.4 Billion Profit Record

(Source: Google Finance)

On January 26^th Apple released their earnings report. Even the giant tech company could not avoid the slowing of the smartphone market. Even though they set a new all-time quarterly profit record for any U.S. public company they failed to meet the sales expectations of the iPhone 6S, also other important products such as the iPad and Mac.

They posted earnings of $18.4 billion (profits) and $75.9 billion in revenue. This is a growth of 2% compared to last year. They beat the expectations in profit but failed in revenue, according to an analysts’ poll by Thomson Reuters. This compares to the $18 billion profit on $74.6 billion in revenue made during the same period last year.

The company had quarterly earnings of $3.28 per share on $75.9 billion in revenue. Analysts expected them to report earnings of about $3.23 a share on $76.54 billion in revenue, according to a consensus estimate from Thomson Reuters.

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” Luca Maestri, Apple’s CFO, said in the company’s earnings release.

Apple and investors need to worry about the sales numbers. iPhone sales were mostly flat last year; the first time sales have not grown since the first iPhone was released in 2007. Apple sold 74.78 million iPhone units during the holiday quarter, compared to the 74.5 million during the same period last year.