Apple reported its fiscal Q1 2016 earnings on Tuesday and the numbers are important. Wall Street has been super worried about slowing iPhone sales growth, which could show that folks are either getting tired of the iPhone or, perhaps more likely, that the market is super saturated. The numbers are in now, though, so lets take a look.
Apple reported fiscal Q1 earnings per share of $3.28, beating the Wall Street consensus of $3.23 per share. Revenues missed Wall Street predictions, coming in at $75.9 billion versus the consensus of $76.54. The good news? That’s a record $18.4 billion in quarterly profit for Apple, which is now sitting on $216 billion in cash.
Apple said it sold a record 74.8 million iPhone units, missing Wall Street’s expectation of 75 million units. That compares to the 74.5 million iPhones Apple sold last year during the same time period, showing growth of just 300,000 units year-on-year. That’s what Wall Street continues to worry about, even though it’s a record quarter.
Apple sees the approaching decline in sales, too, it seems, and said that it expects revenue somewhere between $50 billion and $53 billion next quarter. Bloomberg said that will mark its “first quarterly drop since 2003.”
Apple also sold 16.12 iPads. Wall Street was looking for 17.3 million units, and that shows the continuing downward trend of iPad sales. It sold 5.31 million Macs. Wall Street was looking for 5.8 million units, so it missed there, too.
Shares of Apple are trading up about .40 percent after hours.