Apple posted $18.4 billion in profit last quarter, earning more than any single public company ever, but there’s one problem.
iPhone revenue was up a meager 1% year-on-year and the number of units sold was basically flat, resulting in its slowest sales growth since 2007, according to Recode.
It’s a sign that sales of Apple’s golden goose are stalling, and it could spell trouble for the company moving forward.
The iPhone is still Apple’s largest revenue driver by a large margin, though, and the company moved 74.8 million units in the holiday quarter. Its “Other” product category, which includes Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories, is starting to pick up, posting a 62% increase in revenue year-on-year.
Apple said it had all-time record sales for the iPhone, Apple TV and Apple Watch, though per custom it didn’t reveal how many Apple Watches it sold (same goes for Apple TV).
Coming off a huge quarter last year for the iPhone 6 and iPhone 6 Plus, it’s not surprising Apple didn’t see more growth for what are essentially incremental updates to the phones in the iPhone 6S and 6S Plus.