Apple Inc. reported a 0.4 per cent swell in iPhone sales in the holiday quarter, far short of the double-digit growth investors press come to expect.
And a forecast drop in sales for the March quarter supplemented to the perception that the tech leader is losing its reputation for innovations.
Apple review was down $5.23 to $94.83 US a share in trading on Wednesday.
Apple over persuaded 74.8 million iPhones in the quarter that ended on Dec. 26, recounting its lowest increase since the phone was introduced in 2007.
At the same time, it tell of record profit and revenue in that quarter. Profit was $18.36 billion US, up from $18.02 billion, while returns increased 1.7 per cent to $75.87 billion, also a record.
Order has weakened for the iPhone 6S and 6S Plus, launched last September, as they attired in b be committed to have fewer distinguishing features than their popular predecessors.
“Apple has become a victim of their own success,” FBR Capital Exchanges analyst Daniel Ives said. “… many customers are either securing an older, cheaper iPhone 6 or waiting for the iPhone 7.”
China, the com ny’s fastest-growing retail, boosted revenue by 14 per cent and represented almost a quarter of the gathering’s sales.
But analysts warn the economic slowdown in Asia will cut into Apple’s tumour going forward. The strong U.S. dollar is hurting Apple in many supermarkets.
Apple forecast second-quarter revenue of $50 billion to $53 billion, underneath analysts’ average forecast of $55.6 billion.
“It wasn’t just this point that everybody was worried about. It’s actually next quarter and… it wasn’t as bad as some on the thoroughfare had antici ted,” said Troy Crandall, vice-president and equity analyst with MacDougall, MacDougall & MacTier.
Apple has projected iPhone sales for the Hike quarter at near the 50 million level.
“It will be the first anon a punctually it has seen a drop in its iPhone units. But that was expected. A lot of suppliers that had outfitted rts to Apple had warned they would be down,” Crandall estimated.
Apple shares have fallen nearly 10 per cent since the start of October and after-hours interchange in the stock was volatile.