Apple (NASDAQ:AAPL) on Tuesday released its fiscal first quarter earning report, showing that iPhone sales grew at the slowest pace since 2007 and forecast that revenue in the current quarter will decline for the first time since 2003
The company said that it sold 74.77 million iPhone last quarter, less than analysts’ estimates of 76.54 million units. The iPhone sales only rose less than 1 percent from a year earlier when the iPhone sales were 74.5 million. This is the slowest growth rate since iPhone’s introduction in 2007.
The company also projected revenue of $50 billion to $53 billion in the first three months of the year, which would be less than a revenue of $58 billion from a year earlier and lower than the $55.4 billion forecast by Wall Street, according to S&P Capital IQ.
In addition to the iPhone, Apple’s other product lines are also disappointed. iPad sales continued to decline, falling to 16.1 million tablets during the holiday quarter, compared with a projection of 17.3 million. Mac sales fell to 5.31 million, down from 5.5 million a year earlier, compared with the 5.8 million estimated.
The company said its results suffered from the effects of the strong dollar and slowing global economic growth.
“We’re seeing extreme conditions, unlike anything we’ve experienced before, just about everywhere we look,” Apple’s Chief Executive Officer Mr. Cook said in a conference call with analysts on Tuesday.
IPhone sales accounted for roughly two-thirds of Apple’s revenue. The slowdown in iPhone sales raises investors’ concerns in the company’s future. Although Apple remain immensely profitable, generating a record $18.4 billion in net income.
Apple shares dropped as much as 5.6 percent to $94.39 in the morning.