Apple: 1 billion devices active worldwide

Apple now has 1 billion active devices around the world, its CEO Tim Cook said.

The figure is based on the number of iPhone, iPad, Mac, iPod Touch, Mac, Apple TV and Apple Watch engaged with Apple’s service in the past 90 days.

Cook made the claim during the announcement of the company’s first quarter earnings, which ended on December 26. It generated sales of US$75.9 billion (A$108 billion), with a record quarterly profit of $18.4 billion ($26.2 billion), up from $18 billion ($25.6 billion) from this time last year.

He called it Apple’s “biggest quarter ever”, attributing it to record sales of iPhone, Apple Watch and Apple TV” and the growth of Apple’s services, which includes Apple Music and its App store.

In that time, it showed a 25% rise in device sales, but these were not as high as expected. Apple moved 74.8 million iPhones (but just a 1% rise and not the 78 million expected), 5.3 million Macs (not 5.8 million) and 16.1 million iPads (not the forecasted 17.3 million). Services as App store, iTunes and Apple Music earned over $8 billion ($11.4 billion).

Some US analysts forecast iPhone’s total sales during 2016 as 218 million, a 5.7% decline.

Whether Apple’s other businesses can balance out this declining adoption of iPhones is the key question.

This first quarter was Apple’s first revenue drop in 13 years, with Cook predicting a tough second quarter. Analysts are divided as to what these figures indicate. Some warned that this could mark the start of a decline without new products on the horizon. Others are confident that the arrival of iPhone 7 could generate a return to impressive growth rates. The last iPhone with enough impressive features to generate sales was in 2014.

Apple’s Chief Financial Officer, Luca Maestri, attributed a challenge of a “very different” economic environment around the world. Apple is beginning to see “softness” in China, particularly in Hong Kong, he said. Brazil, Canada, Japan and Russia are also slowing.

“You need to take into account the business opportunities that we have, but also the realities of an economic environment that is not ideal right now. There are a lot of economies around the world that are in recession.”