Apple Inc. (NASDAQ:AAPL) is bracing itself for what could turn out to be its worst run in 13 years, having seen iPhone sales grow at the slowest pace, since their introduction in 2007. The tech giant shipped 74.8 million iPhones in its first fiscal quarter compared to 74.5 million shipped last year. Analysts, on the other hand, had expected iPhone sales of between 75.4 million and 77 million.
A slowdown in iPhone sales could however not deter the iPhone maker from posting better than expected earnings for the quarter. First quarter profit came in at $18.4 billion beating a record set last year by $400 million.
The profit was the largest ever reported by a public company. Revenue for the quarter came in at $75.5 billion on the lower end of an expected range of between $75.5 billion and $77.5 billion. Apple Inc. (NASDAQ:AAPL) missing revenue estimates for the quarter, however, continues to evoke concerns on the Street.
Apple’s Current Fears
The US tech giant expects a strong dollar and a slowing global economy to considerably sales growth going forward. China has begun exhibiting signs of economic softness a sentiment that could considerably hurt sales in the long run. The country has in the recent years emerged as a reliable marketplace for Apple Inc. (NASDAQ:AAPL) products.
Softness in Hong Kong is a point of concern as mainland China is no longer able to offset sluggishness in other marketplaces. Apple Inc. (NASDAQ:AAPL) projecting a sales decline for the current quarter ahead of China’s New Year’s shopping season all but signals the company’s cautious approach.
Shares were down by 2% on Apple Inc. (NASDAQ:AAPL) reiterating a cautious approach for the current quarter as investors brace themselves for tough times ahead. The stock has shed as much as 16% in market value from levels registered in October as the Street remains wary of the company’s prospects going forward. A slowdown in iPhones sales which accounts for two-thirds of the company’s total revenue is something that could continue pushing the stock lower in the market.