Although customers bought an incredible 51.2 million iPhones between January and March, the technology product giant has still disappointed investors and analysts with its latest financial report.
For the first time since releasing the iPhone, Apple has reported lower earnings than previously forecast.
In its latest quarter results, Apple projects $1.90 a share compared to estimates of $2, and revenues of $50.6 billion rather than higher estimates of $51.97.
Apple already warned investors at the start of the year that its first quarter results may be a milestone for the company - and not in a good way.
This is the first time the company has reported shrinking finances since 2003, the pre-iPhone era. That means disappointment has only come after 51 consecutive quarters of growth.
CEO Tim Cook said the company was anticipating a drop of sales - reported on Tuesday at $50.6 billion - compared to revenue this time last year of $58 billion.
Mr Cook said it had been a “challenging quarter” due to the “tough” comparisons of product sales with last year.
iPhone sales, which make up almost three quarters of the company’s overall sales, were hurt as the company sold 10 million devices less compared to this time last year, and Apple is facing competition from brands like Samsung and Huawei.
Record sales of its iPhone in 2015 are becoming increasingly difficult to replicate.
As the market for iPhone and iPad devices becomes increasingly saturated, Apple is keen to point out it made $5.99 billion from its services revenue, which is generated by encouraging customers to pay for iCloud storage, subscribe to Apple music and make transactions via Apple Pay.
Yet analysts say the release of the new iPhone SE, which is smaller and less expensive than previous versions, as well as the next generation of the iPhone 7, are expected to drive up results.
A further slump in growth, however, is around the corner.
As for the next quarter, Apple sees revenue coming in between $41 billion and $43 billion, lower than analysts’ estimates at $47.3 billion.
Shares predictably took a dive of around 5 per cent after the report was released.
The report is the first official data to be released since Apple fought off the Department of Justice’s request to help it break passcodes from the iPhones owned by the San Bernardino shooters in California.
