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Apple sells fewer iPhones than expected in latest quarter

Published 2016-01-26, 04:30 p/m
© Reuters. Apple sells fewer iPhones than expected in latest quarter
AAPL
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By Julia Love
SAN FRANCISCO, Jan 26 (Reuters) - Apple Inc AAPL.O
reported lower-than-expected iPhone sales in the latest quarter,
its slowest-ever growth in shipments, as the company began to
feel the effects of economic softness in the critical Chinese
market.
Apple said on Tuesday it sold 74.8 million iPhones in the
three months ended Dec. 26, the first full quarter of sales of
the iPhone 6S and 6S Plus. The 0.4 percent growth in shipments
was the lowest since the product was launched in 2007.
While revenue in Greater China rose 14 percent in the
quarter, Apple is beginning to see a shift in the economy,
particularly in Hong Kong, Apple Chief Financial Officer Luca
Maestri told Reuters in an interview.
"As we move into the March quarter it's becoming more
apparent that there are some signs of economic softness,"
Maestri said. "We are starting to see something that we have not
seen before."
Analysts have long feared that Apple's sales in China, one
of its top two markets, would falter amid a broad economic
slowdown.
Apple's iPhone shipments fell short of analyst expectations
for 75.5 million, according to research firm FactSet
StreetAccount.
The company's first-quarter net profit rose 1.9 percent to
$18.36 billion, while revenue increased 1.7 percent to $75.87
billion, both records for the company.
The rise in iPhone shipments was the smallest since the
second fiscal quarter of 2013, when they rose 6.8 percent,
according to data company Statista.
Maestri attributed the lackluster revenue to foreign
exchange headwinds, which he said knocked about $5 billion off
the company's revenue.

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