Apple’s Q2 revenue forecast overshadows a record-breaking Q1 of 2016

Enlarge / The iPhone 6S and 6S Plus. (credit: Andrew Cunningham)

Apple has just released its earnings report for the first quarter of fiscal 2016, which runs from the beginning of October to the end of December. The holiday quarter is usually Apple's largest by far, and Apple still managed to grow a little even if it couldn't match the same astounding iPhone 6-driven growth levels it hit in Q1 of 2015. Profit and revenue are both up slightly, but it's mostly thanks to growth in the Services and Other Products categories. Revenue increased in all territories but the Americas and Japan, with China again accounting for most of the growth.

Apple broke quarterly records, with $18.4 billion in profit and $75.9 billion in revenue, compared to $18 billion in profit and $74.6 billion in revenue in Q1 of 2016. Its gross margin was 40.1 percent. These results beat the low end of Apple's guidance for the quarter, which predicted revenue between $75.5 billion and $77.5 billion and a profit margin between 39 and 40 percent.

The company predicts that it will make between $50 and $53 billion in revenue in the second quarter of fiscal 2016 with profit margins between 39 and 39.5 percent. Notably, this is a bit below the $58 billion in revenue that Apple made in Q2 of 2015, so if these numbers are accurate they would be Apple's first year-over-year revenue decrease in more than a decade.

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