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Apple yesterday reported its most successful quarter ever, when it made $75 billion in profit on more than $18,4 billion in revenue. No company has ever earned more in three months. Despite this, Apple's shares did not rise, but instead fell. One reason is iPhones.

It is also true for iPhones that Apple has never sold more iPhones than in the last quarter (74,8 billion). But year-over-year growth was only about 300 units, the weakest growth since the iPhone was released in June 2007. And Apple now expects iPhone sales to decline year-over-year for the first time in the second fiscal quarter of 2016.

When announcing financial results, the Californian giant also provided a traditional forecast for the next three months, and estimated revenues of between $50 billion and $53 billion, down from a year ago ($58 billion). With a high probability, a quarter in which Apple will announce a year-on-year decline in revenue is approaching for the first time in thirteen years. So far, since 2003, it has had a streak of 50 quarters with year-on-year growth.

However, the problem is not only iPhones, which come up against, for example, an increasingly saturated market, but Apple is also negatively affected by the strong dollar and the fact that two thirds of its sales take place abroad. The math is simple: every $100 that Apple earned abroad in another currency a year ago is worth just $85 today. Apple reportedly lost five billion dollars in the first fiscal quarter of the new year.

Apple's forecast only confirms analysts' estimates that in Q2 2016 iPhone sales will decline year-on-year. Some were already betting on Q1, but there Apple narrowly managed to defend growth. It will now be interesting to see what the situation will be at the end of the 2016 fiscal year, as according to many experts, fewer iPhones will be sold overall than in 2015.

But there is definitely room for growth and sales of iPhones. According to Tim Cook, a full 60 percent of customers who owned older generations of iPhones than the iPhone 6/6 Plus still haven't bought the new model. And if these customers were not interested in the "sixth" generations, they could at least be interested in the iPhone 7, due for this fall.

Source: MacRumors
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