Apple's dominance begins to waver as quarterly report shows underwhelming iPhone sales

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"Even with a new model due this fall, the impact of iPhone growth is tapering over time, and placeholder products like Apple TV and Apple Watch, while growing, aren't making up for slowing sales of more important products".

Apple has announced it made $18.4 billion (£12.8 billion) profit in the last quarter of 2015 - more than any other company in history.

Apple posted $18.4 billion in earnings with revenue of $75.9 billion, which beat the $18.22 billion profit projections by analysts but fell short of the revenue projection of $76.67 billion.

"The growth of our services business accelerated during the quarter to produce record results".

Apple said Tuesday there are now one billion active namesake devices in the world including iPhones, iPads, Macs, the iPod touch, the Apple Watch and Apple TV.

In a statement, Apple said that they have sold 74.8 million iPhones in first quarter of the fiscal.

Apple has been diversifying with new offerings in music and is counting on growth from its Apple Watch and accessories.

Apple recorded its biggest ever quarter during its fiscal 2016 first quarter, but warns that sales will slump in the year ahead.

For the first time in 13 years, Apple Inc (AAPL.O) is staring at a revenue slide.

Which means despite the record iPhone sales, the product might not be selling as well as it used to - something Wall Street doesn't like to think about. Apple shifted 74.8m handsets during the quarter, up 0.4 per cent year-on-year, the lowest growth since the iPhone's launch in 2007.

Apple generated total revenue of $75.9 billion, up from $74.6 billion a year earlier.

The company also said that the revenue for its next quarter is expected to be between $50bn and $53bn, both of which lie below the $58bn figure reported in Q2 2015.

Elsewhere, iPad sales hit 16.1 million, thanks to the launch of the iPad Pro.

"So much of Apple's profit comes from the iPhone".

Apple could halt a slowdown in phone sales with a new device launching this spring.