Our record revenue and continued strong operating performance also led to an all-time record quarterly net income of 18.4 billion dollars. We sold 74.8 million iPhones in the December quarter, an all-time high. To put that volume into perspective, it’s an average of over 34,000 iPhones an hour, 24 hours a day, seven days a week for 13 straight weeks. It’s almost 50 percent more than our Q1 volume just two years ago, and more than four times our volume five years ago.
Since the end of fiscal 2014, for instance, the Euro and British Pound are down double-digits, and major currencies such as the Canadian Dollar, Australian Dollar, Mexican Peso, and Turkish Lira have declined 20 percent or more.
Page one of our supplemental material illustrates this point. $100 of Apple’s non-US dollar revenue in Q4 of ’14 translated to only $85 last quarter, due to the weakening currencies in our international markets. As you can see, the movement has been dramatic. Last quarter alone, the currency impact has been very large. Page two of our supplemental material illustrates our Q1 revenue and growth rates expressed in constant currency. The 8 percent growth rate I spoke about earlier translates to $80.8 billion in constant currency revenue, which is $5 billion more than our reported revenue.
iPhone growth has stalled. iPad and Mac sales are down. No revenue numbers on Watch, Apple TV, Apple Stores or App Stores (collectively, everything is profitable).
CFO Luca Maestri on the Good:
We define an active device as one that has been engaged with our services within the past 90 days. Our active installed base has recently passed one billion devices, with year-over-year growth of more than 25 percent.
And the not-so-good:
We sold 5.3 million Macs, compared to 5.5 million last year, a decline of 4 percent… Turning to iPad, we sold 16.1 million, compared to 21.4 million in the year-ago quarter. And we exited the quarter within our 5-7 week target range of iPad channel inventory.
And the good for some:
Let me know turn to our cash position. We entered the quarter with $215.7 billion in cash plus marketable securities, a sequential increase of $10.1 billion. $200 billion of this, or 93 percent of the total, was outside the United States. We returned over $9 billion to investors during the quarter. We paid $3 billion in dividends and equivalents, and we spent $3 billion to repurchase 26 million Apple Shares through open market transactions. We also launched our sixth accelerated share-repurchase program, spending $3 billion and receiving an initial delivery of 20.4 million shares.
$18.4-billion in profits. Compare that to Microsoft where revenue is falling and profits were $4.6-billion, or Google where profits fell below $4-billion.
Apple’s glory days of heady growth are gone.