Apple reports record-breaking financial performance for Q1, but warns of coming dip in iPhone sales

Tech giant Apple has posted its results for the first quarter of the year, with the firm reporting a record-breaking $18.4bn in net income.

This is the highest ever profit ever recorded by a public company for a single quarter,beating the also record-breaking $18bn in profit Apple reported for Q1 2015.

Revenue for the quarter ending December 26th stood at $75.9bn, an increase on $74.6bn for Q1 2015.

However, this is at the low end of the predictions Apple laid out in its last financial results. In those, the firm forecasted revenue of between $75.9bn and $77.5bn.

Revenue dipped four per cent in the America and 12 per cent in Japan over the year. The biggest area of revenue growth was China. Revenue for that region jumped 14 per cent year-on-year – though this is considerably lower than the 70 per cent year-on-year revenue increase that Apple posted in Q1 2015.

74.5m iPhones were sold during the period, roughly the same year-on-year. Meanwhile, iPad sales dipped 25 per cent year-on-year from 21.4m to 16.1m units sold.

In addition, Apple revealed that its active install base had reached one billion devices.

Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said CEO Tim Cook.

The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

But it’s not all good news for the California tech giant.

In a subsequent conference call with investors, Cook was asked about the firm’s guidances for the forthcoming fiscal quarter. In response, he said that iPhone units will decline for the quarter, but didn’t feel that iPhone sales would decline over the entire year period.

Apple also predicts it will generate between $50bn and $53bn during the period.

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