Apple Posts Record Profit but iPhone Growth is Slowing

The Apple headquarters at 1 Infinite Loop, Cupertino, California.

LOS ANGELES — (CNN) Apple announced that it had the most profitable quarter in American history. Yet it has reached the end of its era of unprecedented growth.

Shareholders took a deep breath after Apple released its quarterly financial report Tuesday, as the worst of their fears were not realized. IPhone sales rose last quarter, as did profits and sales. Sales in China were also strong.

Growth was exceptionally hard to come by in the last quarter of 2015, particularly as iPhones just barely beat out sales from a year earlier.

Investors worried that iPhone sales might actually fall for the first time in history, as Apple suppliers have been cutting production of iPhone components left and right, citing weaker demand.

And even though Apple managed to beat its record quarter from a year earlier, Apple said that it believes sales in the current quarter will fall for the first time in 13 years.

Here’s how Apple’s past quarter stacked up against the previous year.

iPhone

Final quarter of 2014: 74.5 million iPhones sold

Final quarter of 2015: 74.8 million, up less than 1%.

Apple posted record iPhone sales in the last quarter — barely.

iPad

2014: 21.4 million iPads sold

2015: 16.1 million, down 25%

IPad sales have fallen for eight straight quarters.

Mac

2014: 5.5 million Macs sold

2015: 5.3 million, down 4%

Wall Street analysts were expecting Apple to sell a record 6 million Macs. PC sales fell broadly last quarter, but Apple had been bucking the overall trend

Profit

2014: $18 billion

2015: $18.4 billion, up 2%

Apple’s quarterly profit was better than expected and the most profitable quarter in corporate history.

Sales

2014: $74.6 billion

2015: $75.9 billion, up 2%

Sales were also a quarterly record for Apple. In 2014, Apple ranked No. 5 on the Fortune 500 list of companies with the most revenue.

China sales

2014: $16.1 billion, making up 22% of Apple’s total sales

2015: $18.4 billion, up 14%, making up 24% of Apple’s total sales

China is still growing, just not as strongly as it had been. Sales in China nearly doubled a year earlier.

This quarter’s sales

First quarter of 2015: $58 billion

First quarter of 2016: $50 billion to $53 billion

The last time Apple’s sales fell year over year was March 2003. As much as investors were concerned about what Apple will say about the past quarter, many are even more focused on the current quarter.

Cash

Third quarter of 2015: $206 billion

Fourth quarter of 2015: $216 billion

Apple posted another record cash hoard. Some critics would like to see Apple use that cash to buy up assets that will help the company grow stronger.

The-CNN-Wire ™ & © 2016 Cable News Network, Inc., a Time Warner Company. All rights reserved. (Photo: CNN)

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