Despite the record results, Apple is currently down 9.11 percent to $467.20 in pre-market trading as the figures came in below expectations, fueling worries that Apple is losing its edge in the mobile space.
On Wednesday, Apple said it shipped a record 47.8 million iPhones in the December quarter, up 29 percent from the year-ago period but below the 50 million shipments that analysts on average had expected.During the quarter, iPad sales hit 22.9 million, up from 15.43 million units last year. Interestingly, the company also seems to be suffering from the PC slowdown as Mac sales collapsed from 5.2 million units in fiscal Q1 2012 to 4.1 million in fiscal Q1 2013.
"It's going to call into question Apple's dominance in the space. It's still one of the strong players, the others being Samsung and Google. It's still a two-horse race, but Android continues to grow rapidly," said Sterne Agee analyst Shaw Wu.
"If you step back a bit, it's clear they shipped a lot of phones. But the problem is the high expectations that investors have. Apple's conservative guidance highlights the concerns over production cuts coming out of Asia recently."