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Apple Reports Largest-ever Profits in Q1 2016

Alex Spencer

Apple StoreApple has reported profits of $18.4bn (£12.8bn) for Q1 2016, the period ended 26 December 2015 – the largest ever recorded by a public company, breaking the own record Apple itself set last year by 2.2 per cent.

That's off the back of revenues of $75.9bn, up 1.7 per cent year-on-year, the majority of which ($51.6) came from iPhone sales. 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. It's worth noting, though, that no new iPhone models were launched during this period.

Apple's only new product launched during the quarter was the iPad Pro, but iPad shipments actually fell 25 per cent to 16.1m, totalling $7m in sales.

The company is still keeping sales of the Apple Watch under wraps – the only clue in these results was the $4.4bn in sales of 'other devices', up nearly two-thirds on last year. This category includes Apple TV, Beats products, iPods and accessories for Apple devices as well as the Watch, though, so it's hard to draw any firm conclusions.

CEO Tim Cook pointed to “the growth of our Services business”, which brought in $6bn over the quarter, and the company's “major milestone of 1bn active devices” (across all of its products) as two highlights of the quarter.

Looking ahead to Q2, though, the forecast is a little less sunny. Apple is predicting revenues of $50-53bn, below its Q2 2015 revenues of $58bn – the first year-on-year drop in revenues recorded by the company for 13 years.