Soaring growth may be over
Apple hits profits record but warns of slowdown
Apple reported the biggest single quarter profit in corporate history tonight, but said it was seeing the slowest-ever rise in sales of iPhones in the Chinese market in what is being seen as the end of its soaring growth.
The technology giant posted a profit for the quarter ending 26 December of $18.4 billion (£12.8bn) against $18bn last time on sales up from $74.6bn to $75.9bn.
But after forecasting its first fall in revenue for 13 years the company’s shares fell 0.7%, adding to a 5% decline this year.
Sales growth of just 0.4% was the slowest rate since the smartphone was launched, and a huge drop on the 46% growth in sales in the corresponding quarter.
The holiday quarter is usually Apple’s largest by far, but Apple couldn’t match the same astounding iPhone 6-driven growth levels it hit last time.
Profit and revenue are both up slightly, but this is mostly because of growth in the services and other products categories.