On April 26, Apple reported its 2016 second quarter financial results, and for the first time in 13 years, it is facing a decline in quarterly revenue. We’re so used to seeing record revenues from Tim Cook’s company, but you cannot deny that you didn’t see this coming. A quick look at the numbers will shine a light on where this inevitable slump sprouted from.

Apple posted a quarterly revenue of $50.6 billion and record quarterly net profit of $10.5 billion. Compare this to one year ago, that’s down from revenue of $58 billion and net profit of $13.6 billion. Says CEO Tim Cook in a press release: “Our team executed extremely well in the face of strong macroeconomic headwinds. We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”

iPhones took a hard hit this quarter, with 51.2 million units sold, compared to 61.2 million in the year-ago quarter. iPads also went on a noticeable decline, with 10.3 million units sold, compared to 12.6 million. Same story for Mac, with 4 million units sold, compared to 4.6 million. Across the board, as you can clearly see, Apple had a tough time living up to its record-breaking numbers this quarter across all three of its major product categories including phones, tablets, and computers.

Now, there is a bright spot among this dour news, and you’ll find it in a category Apple calls Other Products. Though Apple does not report units sold for iPod, Apple TV, and Apple Watch, it does share the overall revenue those products accumulated in the quarter. Other Products amassed $2.2 million in Q2 ’16, up from Q2 ’15’s $1.7 million. In addition, and as Cook mentioned in his quote, Apple’s Internet-connected Services sector (read: iTunes & App Stores, Apple Music) is also on the rise reaching $6 million in revenue, up from the year-ago quarter’s $5 million.

Despite the optimism there, however, Apple’s stock dropped some points following news of the overall quarterly revenue decline. With Apple’s Wordwide Developer’s Conference (WWDC) around the corner, here’s to hoping the tech giant (and still the world’s most valuable company) has some exciting announcements up its sleeve (iPhone 7? iOS 10? The shrouded in mystery Apple Car?) to pick up some forward momentum!

Looking ahead to the third fiscal quarter of 2016, Apple CFO Luca Maestri expects revenue between $41 billion and $43 billion.

[Via Apple]

On January 26, Apple reported its 2016 first quarter financial results. Apple posted a record quarterly revenue of $75.9 billion and record quarterly net profit of $18.4 billion. Compare this to one year ago, that’s up from revenue of $74.6 billion and net profit of $18 billion. Says CEO Tim Cook in a press release: “Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV. The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

It was another “record quarter” for Apple, but there were some startling yet inevitable declines across its product sales. Let’s break it down by product category and then discuss. Apple sold 74.8 million iPhones in the quarter (compared to 74.5 million in the year-ago quarter); 16.1 million iPads (compared to 21.4 million); and 5.3 million Macs (compared to 5.5 million). As for iPod, Apple TV, and Apple Watch, the company stuffs these products into a single category called Other Products and does not disclose how many units of each were sold. However, what we do know is that this division accounted for $4.4 billion of Apple’s revenue this quarter (compared to 2.7 million in the year-ago quarter).

A quick look at those numbers and you’ll come to realize that Apple’s finally hitting a plateau with its innovative product lineup. The iPhone is the company’s most profitable product today, and yet its sales were up just 0.4 percent compared to last year’s first quarter results. The iPad and Macs didn’t fare so well either. Tablet sales dropped 25 percent compared to last year, and computer sales went south by 4 percent. Apple CFO Luca Maestri addresses these significant slumps when predicting 2016’s second fiscal quarter revenue to fall between $50-$53 billion; if that happens, it would mark a year-over-year decline in revenue for the company for the first time in 13 years.

It isn’t all bad news for (still) one of the most profitable companies in the world. Apple’s touting a 63 percent jump in sales in its Other Products category that now includes hot holiday gifts like the new-and-improved Apple TV and Apple Watch. In addition, its Internet-connected Services jumped 27 percent year-over-year; iTunes, the App Stores, and Apple Music helped rake in $6.1 billion in revenue this quarter.

Despite the declines due to “the overall [economic] malaise in virtually every country in the world” and in particular the economic “softness” in China, Tim Cook is bullish on Apple’s future. With an active install base of 1 billion devices (that is iPhone, iPad, Mac, iPod touch, Apple TV and Apple Watch devices that have been engaged in Apple’s services within the past 90 days) and strong customer service and retention rates that are “second to none” in the industry, Cook is unwavering in his belief that Apple will continue to grow as new hardware, software, and services will push his company into the future. It’s just a sad thought knowing that the next quarter will likely be the first one in awhile we won’t be calling a new record.

[Via Apple; Engadget 1, 2; Deadline]

On October 27, Apple reported its 2015 fourth quarter financial results. Apple posted a quarterly revenue of $51.5 billion and net profit of $11.1 billion. Compare this to one year ago, that’s up from revenue of $42.1 billion and net profit of $8.5 billion. Says CEO Tim Cook in a press release: “Fiscal 2015 was Apple’s most successful year ever, with revenue growing 28% to nearly $234 billion. This continued success is the result of our commitment to making the best, most innovative products on earth, and it’s a testament to the tremendous execution by our teams. We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV which begins shipping this week.”

Now let’s break it down by product category. Apple sold 48 million iPhones in the quarter (compared to 39.2 million in the year-ago quarter); 9.8 million iPads (compared to 12.3 million); and 5.7 million Macs (compared to 5.5 million). As for iPod, Apple TV, and Apple Watch, the company stuffs these products into a single category called Other Products and unfortunately does not disclose how many units of each were sold. However, what we do know is that this division accounted for $3 billion of Apple’s revenue this quarter (compared to 1.9 million in the year-ago quarter).

Looking ahead to the first fiscal quarter of 2016, Apple CFO Luca Maestri expects revenue between $75.5 billion and $77.5 billion.

[Via Apple]

On January 27, Apple reported its 2015 first quarter financial results. Apple posted a record quarterly revenue of $74.6 billion and net profit of $18 billion. Compare this to one year ago, that’s up from revenue of $57.6 billion and net profit of $13.1 billion. Says CEO Tim Cook: “We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high. Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”

Now let’s break it down by product category. Apple sold a record 74.5 million iPhones in the quarter (compared to 51 million in the year-ago quarter); 21.4 million iPads (compared to 26 million); and 5.5 million Macs (compared to 4.8 million). iPod sales surely declined as they do every year these days, and the company no longer discloses specifically how many units from this product line are sold.

Up to now, consumers have only privy to a somewhat large release window regarding the highly anticipated Apple Watch. In atypical Apple fashion, Cook narrowed that timeframe down to a specific launch month to eager reporters on an earnings conference call. The Apple Watch, previously pegged for an “early 2015” release, will hit the market in April.

Looking ahead to the second fiscal quarter of 2015, Apple CFO Luca Maestri expects revenue between $52 billion and $55 billion.

Update: APPL stock is soaring following the release of these record results. That’s more than likely because of the unexpectedly high $74.6 billion revenue. At the end of last quarter, CFO Maestri expected revenue between $63.5 billion and $66.5 billion. The company undershot, and the market is currently respecting it for that.

[Via Apple]

On October 20, Apple reported its 2014 fourth quarter financial results. Apple posted a record quarterly revenue of $42.1 billion and net profit of $8.5 billion. Compare this to one year ago, that’s up from revenue of $37.5 billion and net profit of $7.5 billion. Says CEO Tim Cook: “Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus. With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.”

Now let’s break it down by product category. Apple sold 39.3 million iPhones in the quarter (compared to 33.8 million in the year-ago quarter); 12.3 million iPads (compared to 14.1 million); and 5.5 million Macs (compared to 3.8 million). iPod sales continue to decline; Apple reports 2.6 million units sold, down 24 percent from the year-ago quarter.

Looking ahead to the first fiscal quarter of 2015, Apple CFO Luca Maestri expects revenue between $63.5 billion and $66.5 billion.

[Via Apple]

On October 28 Apple reported its third quarter financial results. Apple posted a $7.5 billion profit on $37.5 billion in revenue. Compare this to one year ago, that’s down from a profit of $8.2 billion and slightly up on $36 billion in revenue. Says CEO Tim Cook: “We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones. We’re excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS.”

Now let’s break it down by product category. Apple sold 33.8 million iPhones in the quarter (compared to 26.9 million in the year-ago quarter); 14.1 million iPads (compared to 14 million); and 3.8 million Macs (compared to 4.6 million). iPod sales have declined year after year ever since the introduction of the iPhone, and interestingly Apple is no longer reporting how many units sold in this product department.

Looking ahead to the first fiscal quarter of 2014, Apple CFO Peter Oppenheimer expects revenue between $55 billion and $58 billion.

[Via Apple]