Apple’s shares fell on Wednesday after the company reported its slowest-ever rise in iPhone shipments.
The January to March quarter is likely to be the weakest this year in terms of iPhone sales for the company, which forecast on Tuesday its first quarterly revenue drop in 13 years.
Tepid demand for the latest iPhones – that succeeded blockbuster sales of the iPhone 6 and 6 Plus – led Apple to sell 74.8 million iPhones in the first quarter. It expects to sell 50-52 million units in the March quarter.
Apple usually launches new iPhones in September and sells most devices in the December quarter. Unit sales typically drop over the next few quarters leading up to the next iPhone launch.
The next model, the iPhone 7, is expected to sport a new look with features such as waterproofing, wireless headphones and force touch as the device’s home button.
Before the results were announced FBR Capital Markets analyst Daniel Ives said: “Apple has become a victim of their own success as the blockbuster iPhone 6 product cycle was hard to replicate as many customers are either buying an older, cheaper iPhone 6 or waiting for the iPhone 7.”
The forecast of lower revenues from iPhone maker Apple also hit European technology and chipmaker stocks such as ARM and Dialog on Wednesday.