American technology major Apple has released its revenue report of the fiscal 2016, first quarter ending on 26 December, 2015.
Apple posted record $75.6 billion revenue with quarterly net income of $18.4 billion, compared to $74.6 billion revenue with quarterly net income of $18 billion last year.
"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, CEO, Apple.
"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," he added.
Though the results show Apple registering a record revenue, the growth rate is only 2% and Cook has hinted that the iPhone sales, which form the bulk (almost 2/3rd) of the company's revenue will decline in the coming quarter.
The company expects the second quarter revenue to range between $50 billion and $53 billion, apparently indicating that there will be a minimum $5-8 billion drop in earnings. Apple clocked $58 billion revenue in the same period of 2015. This will be the first time since 2007, when the first iPhone model was launched, that the company will witness a drop in sales.
Within hours of the announcement of Apple's first quarter results, the company's share value saw a dip of more than 1%, reported CNBC.
Meanwhile, the Apple CEO has revealed that the company will continue to invest in iPhone development and hopes to weather the storm in the later part of the year. The company is scheduled to launch new iPhone 7 series in September, which is expected to reverse the profit decline.
Read more: Apple electric vehicle (aka iCar) project head to leave company soon
Rumour has it that Apple is also planning to launch new iPhone 5se with iPad Air 3 and Apple Watch 2 in March. The speculated iPhone 5se is said to be a mid-segment smartphone targeted towards India and other emerging markets of Asia and Africa.
Read more: Apple iPhone 5se aka 6c features and price revealed ahead of launch
Just a few days ago, Apple submitted an application with the Department of Industrial Policy and Promotion (DIPP) to set up flagship retail stores in India hinting that the Cupertino-based company, after tasting success in China, is now looking to India as the next revenu-generating market.
Read more: Apple plans to set up its own retail stores in India, applies to DIPP for approval
It remains to be seen whether Apple's new strategy for emerging markets be able to turn things around in 2016.
