"Last year Apple notched a record $18 billion in profit during this period, the largest ever recorded by a single public corporation. This year the company topped that, generating a profit of $18.4 billion on $75.9 billion in revenue during the last three months of 2015."

"But, the company also predicted the revenue for the second quarter of 2016, which for Apple is the first three months of this year, would come in between $50 and $53 billion. That is down from the $58 billion it earned during the second quarter of 2015, and would mark the first year-over-year revenue decline for Apple in the last thirteen years. It was the best of times, it was the worst of time."

"But revenue was down in Japan and the Americas, with big growth in China being the only reason Apple's revenue hasn't already seen a year-over-year decline. The total number of iPhones sold in Q1 of 2016, 74.78 million, was basically flat against the same period in 2015. iPad sales declined 21 percent from 2015, with 16.1 million sold this quarter. And Mac sales were down three percent from last year, to 5.31 million."

"As usual, iPhone sales were by far the largest revenue driver at Apple. But the best growth for the company is now coming from its "services" and "other products". Services — which consists of things like the app store, iCloud, AppleCare, and Apple Pay — grew 26 percent year over year to $6.05 billion. "Other Products", which includes the Apple Watch and Apple TV, grew its revenue 62 percent year-over-year, bringing in 4.3 billion this quarter."

"Apple highlighted the increasing diversity of its product line by noting that it has over 1 billion active users across all iOS devices within the last 90 days. And it noted that this quarter saw record sales of both the Apple TV and Apple Watch, without providing more detailed numbers."

"Asked about virtual reality on today's investor call, Cook sounded bullish. "In terms of VR, um, uh, no I don’t think it’s a niche. I think it can be, it's really cool, and has some interesting applications." Sounds like Apple is interested, although we still don't know how long the company plans to sit on the sidelines."

iPhone dissapointed. iPad had a huge miss. Mac also missed. Revenue fell short. Lower guidance. Sloppy quarter from Apple.

Guess my thread came at the right timing....

Or maybe this is sarcasm? Either way, the quarter was bad when you dig into it. Profits did beat by a few cents, though it's always been the case. And revenue, sales, and guidance showed worrying signs.

Yeah, the drop in iPads is staggering.

Well I won't say it was surprising. I was expecting the iPad Pro to flop before release, which was likely the reason for a big miss. I even posted this on neogaf: http://neogaf.com/forum/showthread.php?t=1137701

Sensationalism much?

"Last year Apple notched a record $18 billion in profit during this period, the largest ever recorded by a single public corporation. This year the company topped that, generating a profit of $18.4 billion on $75.9 billion in revenue during the last three months of 2015."

....and the main seller this year is an S model. 

How so? Profits did beat, but Apple has been doing this for 9 years straight, so investors don't worry about this as much. Flat revenue is a big worry, especially considering how they're expecting next year to be down, and how it would be the first down year since god knows when. And say what you will, but all of its major product lines disappointed in sales. Now I'm getting this all from CNBC, I literally just found out about this 5 minutes ago.

iPad Pro is a massive failure. No other way to put this. As someone who works on iOS devices on a daily basis since 2012, all I can say that not many developers look at it and see tremendous possibilities when compared to the Air or mini series. Its pointless. It has its own niche, true, but for the mainstream it is an overpriced and over-sized tablet.

Their phone sales stagnation is expected. As more and more people can afford one, the refresh rate slows down. I still know plenty of Apple users who still rock a 4S or even 4. They need to get out newer devices at lower price (think 5C but a better implementation). Maybe the rumored 5SE will do just that.

This. I can't see how everyone wasn't expecting this. There are many other 2 in 1's that are just as good, and run an OS that has access to deskop applications. iOS doesn't have this, so Apple shouldn't be surprised. They should've just released an iPad Air 3, or have OSX on the iPad Pro.

Agreed. Air 3 with iOS10 and Pro 2 with Dualboot (iOS10 and OSX) could become a game changer for Apple and the industry, where full, desktop class compatible 2 in 1s are still a small minority. Done right, it could be the perfect bridge between MacBooks and tablets, and could make huge gains for Apple in popularizing OSX.

I am not expecting this to happen anytime soon. Apple is sloppy lately, and new markets that they try lately (smart devices) are simply not growing fast enough. Maybe their rumored smartcar will be the revolution they crave for or maybe they are simply entering another slump period.