News: Has the world reached Peak iPhone?
Results season is upon the technology industry. CBR rounds up some of the results from the major technology giants.
Apple's financial results saw the term 'Peak iPhone' being quickly coined to describe the disappointing performance. The company posted quarterly revenue of $75.9 billion and net income of $18.4 billion for Q1 2016 (the three months ending December 26).
This shows a 1.7 percent rise in revenue year-on-year and a 2 percent rise in net income. International sales accounted for 66 percent of revenue in the quarter.
The lacklustre growth in iPhone unit sales disappointed compared to previous years; in the same quarter last year unit sales increased 46 percent.
Apple gave guidance of between $50 billion and $53 billion for the upcoming quarter, lower than what Apple achieved in the equivalent quarter a year earlier. This would represent the first year-on-year decline in revenues since the launch of the iPhone.
"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," said Tim Cook, Apple's CEO.
"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."
Ericsson saw reported sales increase 8 percent to 73.6 billion SEK, but they fell 1 percent when currency adjustments were taken into account.
The company achieved operating profit of 11 billion SEK, roughly $1.29 billion. This was an increase of 74.6 percent year-on-year.
"While market conditions are challenging in certain parts of the world, we continue our work to capture business opportunities as more markets shift to 4G. At the same time we will work to extend our technology leadership also in the emerging 5G market," said CEO Hans Vestberg.
"After a period of investing, in order to create growth, we also need to improve earnings. This will involve stronger focus on software sales and recurring business as a complement to the already strong Professional Services business."
LG reported Q4 operating profit of KRW 349 billion, around $301.38 million. This marked an increase of 27 percent year-on-year, driven by the profitability of home appliances and home entertainment products.
Sales for the quarter totalled KRW 14.56 trillion, or $12.57 billion. This was a 4.7 percent revenue decline year-on-year.
Mobile communications saw sales of KRW 3.78 trillion, the same as a year ago, while the home entertainment division saw revenues of KRW 4.74 trillion, a year-on-year decline.
Full-year operating income for the South Korean electronics giant was KRW 1.19 trillion, or $1.03 billion. Full-year revenues were KRW 56.51 trillion ($48.8 billion.
These operating income and revenue figures represented year-on-year declines of 35 percent and 4 percent respectively.
AT&T saw its total operating revenue at $42.12 billion, an increase of 22.3 percent year-on-year, in Q4.
The carrier had net income of $4.01 billion, after making a loss the previous year.
It had 526,000 net new postpaid customers in the quarter, which was down 38.4 percent from the figure of 854,000 the previous year.
There were signs that AT&T's $49 billion acquisition of DirecTV was paying off, with 214,000 satellite video customers added in the quarter.
An internal document seen by Reuters from Xiaomi, the second biggest smartphone vendor in China, revealed that its Internet services revenue more than doubled in 2015 to 3.71 billion yuan, roughly $564 million.
The figures, including income from games and mobile payment apps, rose 150 percent from the figure a year earlier.
Revenue from mobile games hit 2.6 billion yuan in the year, double the 1.21 billion yuan from the previous year.