FILE – In this Wednesday, Sept. 9, 2015, file photo, Apple CEO Tim Cook discusses the new iPhone 6s and iPhone 6s Plus during the Apple event at the Bill Graham Civic Auditorium in San Francisco. Most analysts believe Apple surpassed its own record by selling more than 74.5 million iPhones in the final three months of 2015. But there are signs that iPhone sales in the first three months of 2016 will show an abrupt decline from the same period a year earlier. (AP Photo/Eric Risberg, File)SAN FRANCISCO – Apple’s iPhone has officially entered a slow-growth period.
Apple on Tuesday said it sold 74.8 million iPhones in its fiscal first quarter, which ended on Dec. 26. That was up less than 1 percent from the 74.5 million iPhones sold a year ago, making it among the slowest year-over-year growth periods for the device since it was introduced in 2007. The iPhone, Apple’s flagship product, is closely watched by investors because the smartphone accounts for two-thirds of the company’s annual revenue.
In total, Apple’s revenue for the quarter was $75.9 billion, up 1.7 percent from a year ago, and lower than Wall Street forecasts of $76.6 billion. Net profit was $18.4 billion, up from $18 billion a year earlier.
Apple also issued a disappointing forecast for the current quarter, which ends in March. The company, based in Cupertino, California, projected revenue of $50 billion to $53 billion, compared with $58 billion from a year earlier and lower than the $55.4 billion forecast by Wall Street, according to S&P Capital IQ.
Under its chief executive, Timothy D. Cook, Apple is grappling with becoming a maturing tech company as its once red-hot growth rates slow. Investors are already treating Apple more like a value stock than a growth stock, associating the company with predictable business results and a reliable dividend rather than runaway revenue growth.