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Apple iPhone Sales Grow at Slowest Rate Ever

Wall Street Journal Original article ›

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Apple reports a slowdown in iPhone sales, with a less than 1 percent in increase in sales, for fiscal first quarter ending Dec. 26, 2015, over the prior year quarter. Revenue is expected to decline by 11% for the quarter ending in March 2016, over the prior year, first such decline in 13 years. Analysts say Apple will have to reduce gross margins of about 40% to increase sales. Apple CFO Maestri says Apple increased prices in some markets because of the strong dollar. When the stronger dollar is excluded from results for the quarter ending Dec. 26, 2015, sales revenue increased by 8% over prior year quarter, according to Apple. As Apple slows down its shares financial performance is stalled at about $100. Apple tried to present a different picture now that China sales are slowing down- it said that users had "engaged" with 1 billion Apple devices whether iPhone, iPad, Mac, or Apple TV, in the last 90 days, by downloading an app, song or movie. These services geneated $5.5 billion in revenues for the quarter ending in December, a 15% increase over prior year quarter.

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