Apple has announced its earnings report for the first quarter of 2016 and it is a result that goes in two directions.
On the one hand, Apple made a record profit of $ 18.4 billion on revenue of $ 75.9 billion, the largest ever accumulated by a single public corporation. On the other hand, the company announced a clear slowdown in its sales best-selling mobile device and warned that sales could fall for the first time next year.
The good news
Last year, in the first quarter, Apple made a record quarterly profit of $ 18 billion with revenue of $ 74.60 billion, and exceeding that figure keeps the company on the technology throne. «Our financial position has never been stronger,» Tim Cook said during yesterday’s announcement.
Claiming that Apple is the «mother of all balance sheets,» Cook continued to promote $ 293 billion in assets, with $ 205 billion in cash. He added that the company currently has one billion active devices.
An important part of Apple’s earnings can be attributed to China, with a 14% increase in revenue in the area compared to the previous year. «Despite these remarkable results, we have begun to see greater economic weakness in China in recent months, especially in Hong Kong,» Cook said.
The bad news
You’d think record profits would make a lot of people happy, but Apple’s small size now means there’s increasing pressure on the company not to stop growing. And that seems to be happening with the iPhone.
Apple sold 74.8 million iPhones in the last three months of 2015. This is a record number, but relatively not much above the 74.46 million sold in the same period in 2014, especially when you consider that the number in the first quarter of the previous year to date was 51.03 million units. This apparent slowdown in growth is leading some analysts to argue the end of the iPhone growth era . Given that the iPhone accounted for 68% of Apple’s revenue in that quarter, this lack of growth is notable.
The company also said revenue for the next quarter is expected to be between $ 50 billion and $ 53 billion, both below the $ 58 billion figure reported in the second quarter of 2015. If so, it would mark the first drop. to Apple. in revenue since the launch of the first iPhone.
IPad sales also fell 16.1 million in the quarter, from 21.4 million in the same period last year. Revenues in the «other products» category, which include the Apple Watch and Apple TV, saw a 62% year-over-year increase in revenue, bringing $ 4.3 billion to the table.
Finally, the figures show a company at the peak of its powers, but also one at risk of decline. It will put a lot of pressure on performance of iPhone 7 when it launches this year and gives people a reason to break away from their previous iPhone models. There is also the possibility that Apple will expand its portfolio, possibly with a virtual reality device. We know Apple has recently advanced in that direction , and during the investor’s call, Cook was open to the idea: “As for virtual reality … no, I don’t think it’s a niche. I think it can be, it’s very cool and it has some interesting applications, «he said.