First Time Expected To Fall iPhone sales

Apple told the world that iPhone sales may fall for the first time. The news came after the company sold 74.8 million iPhones in the quarter that ended on December 26, 2015. That was only a 0.4 percent increase from the same period a year earlier.

Apple’s Warning About Falling iPhone Sales

Apple’s chief executive, Tim Cook, said the company expects iPhone units to drop in the next quarter. He said this on a phone call with analysts. The warning came after the iPhone’s slowest growth since it was first sold in 2007.

The iPhone still makes up about 66 percent of Apple’s total revenue. But the company said it needs a new source of growth because the iPhone market is getting full.

What the Numbers Really Mean

Apple sold 74.8 million iPhones in the quarter. That is a record number, but it is only a tiny rise from 74.5 million sold a year earlier. The growth of 0.4 percent is the smallest since the iPhone launched.

Apple’s total revenue for the quarter was $75.9 billion. This was a new high, but it was still lower than what analysts expected.

Net profit was $18.4 billion, up 2 percent from the same quarter in 2014. Even with the profit rise, Apple said its revenue could fall to between $50 billion and $53 billion in the next quarter. That would be down from $58 billion a year earlier – the biggest drop in 13 years.

Why Sales Might Be Slowing Down

There are several reasons for the slowdown. First, many people already own an iPhone. Apple said about 60 percent of people who had an iPhone 5 had not yet upgraded to an iPhone 6 or 6S.

Second, the Chinese market, which is very important for Apple, has become softer. Economic weakness in China can affect iPhone sales.

Third, the iPhone market is getting crowded. New phones from other brands are cheaper and have similar features.

Finally, Apple does not yet have a new blockbuster product to replace the iPhone. Analysts worry that without a fresh hit, growth will stay slow.

What Apple Is Doing Next

Apple said it will keep investing in phones. Tim Cook said there are still many people who will buy iPhones in the future.

The company is also working on other products. Apple Watch and Apple TV are mentioned as part of the company’s growth plan.

Since the 2015 warning, Apple has had mixed results. In November 2025, Apple’s iPhone shipments beat Samsung’s for the first time in 14 years, according to CNBC.

In April 2026, Counterpoint Research reported that global smartphone shipments fell 6 percent year‑over‑year, but Apple led the market for the first time in that quarter.

Later in 2026, Apple gave revenue guidance that topped analysts’ estimates because of strong iPhone and Mac demand, as reported by CNBC.

These later headlines show that Apple can bounce back, but the 2015 warning still matters. It reminds investors that the iPhone market can slow down and that Apple must keep innovating.

FAQ

Did Apple really say iPhone sales will fall?

Yes. Tim Cook told analysts that iPhone units are expected to drop in the next quarter.

How many iPhones were sold in the quarter that ended December 26, 2015?

Apple sold 74.8 million iPhones in that quarter.

Why is the growth so small?

The growth is only 0.4 percent because many customers already have iPhones and are not upgrading quickly.

Will Apple’s other products help the company?

Apple hopes that Apple Watch, Apple TV and future devices will add new sources of revenue.

Conclusion

Apple warned that iPhone sales may fall for the first time since 2007. The company sold 74.8 million phones, a record but a very small growth. Revenue could drop to $50‑$53 billion next quarter, the biggest fall in 13 years. Reasons include market saturation, a softer Chinese economy, and the need for a new flagship product. Apple is still investing in phones and other devices, and later headlines show the company can recover. However, the warning reminds us that the iPhone market is maturing and that Apple must keep innovating to stay strong.