After record sales this year, Apple Inc. (NASDAQ:AAPL) is likely to see sluggish sales growth in 2016.
Andy Hargreaves, an analyst at Pacific Crest Securities, has put sales estimates in 2Q2015 slightly above the market predictions. He is also optimistic about moderate sales growth for Apple’s iPhone in FY2015 and FY2016.
He also increased sales estimate moderately for Apple Watch. The estimates are based on a strong initial response from buyers for the product.
However, Andy Hargreaves is expecting challenges for the sales growth of iPhone in FY2016. According to Andy Hargreaves, Apple Inc is likely to hit road blocks for the proposed expansions and earnings.
A drop in buyers for iPhone and a possible increase in replacements for the product is likely to reduce sales in FY2016.
The sales of iPhone units are likely to drop below the estimates of market analysts, who are optimistic about significant growth in revenue and profits from sales of iPhone, in FY2016.
Apple Inc Posts Robust Sales Growth in 4Q2014
Apple has posted considerable sales growth in 4Q2014. The sales of iPhone have increased by 46% year on year. It has posted a revenue growth of 57%. It has reported a net profit of $18 billion on sales of $74.6 billion. Its gross margin saw an increase of 2% over the corresponding period last year. Its global sales accounted for 65% of the total revenue.
The company has sold 74.5 million units iPhone during this quarter, an increase of 23.5 million units when compared to last year. It also reported strong sales of Mac at 5.5 million units, an increase of 0.7 million units over the corresponding quarter of previous year. This indicates trusts of the customers in Apple products and adoption of latest features.
However, the company has posted disappointed iPad sales at 21.4million units, a decrease of 4.6 million units.
Apple’s CEO Tim Cook has expressed thanks to the customers for extending support to post robust sales. The company reported 30% growth in its revenue when compared to last year. It is the result of timely coordination of our teams.