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Apple to take a bigger bite from Indian smartphone market

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Apple to take a bigger bite from Indian smartphone market

Apple chief executive, Tim Cook, said on the company's earnings call that he expects iPhone sales to decline in the next quarter which would be the first decline in iPhone sales since its 2007 launch.

The company inched past its previous record, established when it sold 74.5 million iPhones in the holiday quarter of 2014.

While Apple remains enormously profitable by generating a record $18.4 billion in net income on sales of $75.9 billion in the December quarter but it is no longer getting benefitted relatively to other smartphone makers due to lesser demand for its premium products.

That slow growth and Apple's projection for the current quarter, which ends in March, is sure to have investors anxious.

Revenue dipped four per cent in the America and 12 per cent in Japan over the year.

Apple reported record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion for its first quarter in 2016.

Apple offered guidance that revenue for the second quarter of 2016 would be between $50 and $53 billion U.S. dollars - some £35 to £37 billion converted - down from $58 billion (£40bn) in the same quarter a year ago.

So, now that the dust is settling following the initial reaction to Apple's quarterly results and outlook, the question of "what's next?" is facing Cook and Co., Apple customers and those investors, who have seen Apple's stock price fall by nearly 29 percent since the shares reached a 52-week-high of $134.54 last April.

The news has seen Apple's share price slide by 2.7%, despite the fact that the results represent Apple's best ever.

Along with record profits during the fourth quarter, Apple said its active installed base surpassed a billion devices for the first time ever.

In addition to the iPhone, Apple's other product lines are also disappointed. iPad sales continued to decline, falling to 16.1 million tablets during the holiday quarter, compared with a projection of 17.3 million.

Cook didn't say whether iPhone sales will drop for the entire year, but he did say he doesn't think the market is saturated thanks to emerging markets where many citizens have yet to invest in smartphones.

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