Apple has another record quarter, but iPhone sales growth slows to a halt

It’s going to be very interesting to see Apple spin these financials results. The company just announced its Q1 2016 results, and the company posted recored quarterly revenue and profit of $75.9 billion and $18.4 billion, respectively. That sounds great until you realize that the doomsaying over slowing iPhone sales has come true. Apple sold 74.8 million iPhones in its first full quarter of iPhone 6S and 6S Plus availability — up a meager 0.4 percent over a year ago.

The bad news continues when looking at the iPad — Apple moved 16.1 million tablets in the quarter, down 25 percent over a year ago. It looks like the iPad Pro isn’t the savior the company was looking for. Mac sales declined slightly as well, down 4 percent to 5.3 million units in the quarter.

While none of Apple’s main product lines had the growth we’ve come accustomed to seeing, there were a few additional bright spots in the company’s financials (beyond that record-breaking revenue and profit, of course). Apple’s recently-created “other products” category, which includes the Apple TV, Apple Watch, and the iPod, had the biggest quarter in terms of revenue since the company started reporting data in this fashion. Revenue of $4.4 billion in the “other products” category was up significantly quarter-over-quarter (44 percent) and year-over-year (63 percent). Of course, a year ago this category didn’t have an Apple Watch or a new Apple TV to buoy it, but still it seems both products likely were popular holiday gifts for the company.

It’s also worth noting that Apple’s “services” category also jumped up significantly this quarter — revenues of $6.1 billion are up 20 percent quarter-over-quarter and 27 percent year-over-year. It’s probable that people are buying more apps than ever for their iOS devices, spending cash on downloads for those new Apple TVs, and perhaps even subscribing to Apple Music.

Apple also pointed out that it now has over 1 billion active devices across all its product categories, including the Mac, iPad, iPhone, iPod touch, Apple TV and Apple Watch. Those devices have “engaged with Apple’s services” at some point during the last 90 days. CFO Luca Maestri said that was up over 25 percent compared to a year ago.

The company is holding its quarterly financial call with CEO Tim Cook at 5PM ET, and we’ll be listening in to see how Apple explains these results and what other details the company decides to share. Stay tuned!

[Image credit: Sefa Karacan/Anadolu Agency/Getty Images]

Source: Apple (BusinessWire)