>> Apple saw a little bit of a slow down in iPhone sales this quarter, and it's unnerving some investors. This is Jonathan Weber, Global Technology editor of Reuters here in San Francisco. So Apple's earnings are always widely anticipated. It's the largest cap company on the stock market, and their stock has had quite a good run lately.
It's been way up by almost 50% over the last year or so. Investors were expecting another strong quarter, and they got what is by most standards a pretty strong quarter. But a few things came in lighter than expected. In particular, the iPhone sales number, which is the thing people focus on the most.
It was a little bit below what was expected. There seems to be a pattern that Apple often confronts when it's in this part of the product cycle. Where people who are looking for a new phone, might be waiting a little bit until the new iPhone comes out in the fall.
That might be stalling sales a little bit of the current iPhone line. So it's not a great quarter for Apple. But the flip side is that there's nothing very surprising or dramatic in these trends that would cause anyone to really panic about it. But to keep things in perspective a little bit, this is still a company that had more than $50 billion in sales in the quarter and profits of about $11 billion.
So this remains just an absolute revenue and cash machine. There still does remain this large, long-term question as to whether they can come up with another great product. They can't live on the iPhone forever. And they are going to have to find some new sources of growth eventually.
The new product initiative, so far, like the watch, have not really been the kind of things that'll really move the needle. So people are still waiting for the car, or the big initiative in movies and television, for example. But we still don't know what that next breakthrough might be.