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Apple Q1 - iPhone sales down, record profits

Last night Apple, formerly the worlds biggest company, reported its Q1 numbers. This will be the first time in over a decade where the holiday season didn't see sales growth. Total sales dropped 5% from $88 billion to $84 billion. Roughly speaking Apple sells $1 billion worth of products every day! Thanks to Apple deploying some of their huge cash pile in buying back shares, 377 067 to be exact or 7% of the company, EPS is at a record high.


Found at BGR

The elephant in the room is that iPhone revenues dropped 15% year over year. This was expected and is why the price of Apple dropped from around $230 a share to the current $155 a share. As the cost of a phone increases and as the technological advances slow, customers are now inclined to keep their phones for longer. What is key though is that customers are still staying in the Apple ecosystem, where there are now 1.4 billion active devices. Tim Cook said the following.

    "Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That's a great testament to the satisfaction and loyalty of our customers, and it's driving our Services business to new records thanks to our large and fast-growing ecosystem."


The services business grew revenue by 20% to $10.9 billion, where Apple disclosed that their profit margin is a whopping 63%! Another division of strong growth is their 'Wearables, Home and Accessories' where revenues grew by 33%. iPhone sales might be slowing but their other divisions are working hard to make up the difference. Even though these results didn't show revenue growth, the share price is up over 5% in after hours trade. We are still happy holders.


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