Apple sells 74.8M iPhones, reports record $75.9 billion revenue in FY Q1 2016

Apple announced financial results for its fiscal 2016 first quarter ended December 26, 2015, that beat analyst estimates, but fell short on unit sales. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion. Analyst had expected Apple to report earning of $76.54 billion in revenue.

The revenues were up 2 percent and earning per share up by 7 percent YoY (year-over-year) driven by all-time record iPhone sales, all-time-record revenue from services, the expanded availability of Apple Watch and the new Apple TV.

"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 Tim Cook, Apple's CEO. "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." 

Apple sold 74.8 million iPhones, all all-time high, compared to 74.5 million in Q1 2015, but the growth is just 1 percent, the slowest since the introduction of iPhones in 2007. However the expected target of 75.6 million was missed. 

Luca Maestri, Apple's CFO said iPhone sales grew 76 percent in India, and more than 45 percent in Korea, Middle East, and Africa. Sales were also up 20 percent or more in many western European countries, and grew 18 percent in Mainland China.

Tim Cook said that he expects iPhone unit sales to decline in Q2 as Apple expects to ship 50 - 52 million iPhones in the March quarter.

Mac and iPad saw weaker sales, as the company sold 16.1 million iPad compared to an expected 17.93 million, and Macs recorded 5.3 million compared to estimates of 5.8 million. The company's revenue from services, including app store, iCloud, AppleCare, and Apple Pay increased by 26 percent to 6.05 billion, and the total revenue from Apple Watch and Apple TV grew by 62 percent to 4.3 billion dollars.