Apple's quarterly sales fall, but forecast calls for gains

The Silicon Valley tech giant is forecasting a return to growth in iPhone sales this winter, after a rare slump that dropped a wet blanket on Apple's revenue and stock performance over the last three quarters.

Apple has been struggling with shrinking demand for its signature products at a time when analysts say it's increasingly difficult for tech companies to come up with dramatically new features.

Apple's forecast also represents a modest increase over the $75.8 billion in sales that Apple reported for the December quarter last year, and it suggests the company expects to beat last year's record of 74.8 million iPhones sold in that period, which is traditionally Apple's biggest quarter for sales.

Maestri wouldn't comment on how many iPhones Apple expects to sell in December quarter, but Piper Jaffray analyst Gene Munster estimated the company's revenue forecast suggests it will sell 78.5 million iPhones.

"Management hasn't diversified the revenue stream," said BGC Partners analyst Colin Gillis, who noted that Apple faces a host of competitors in a global smartphone market that's seeing slower growth overall.

[...] the company recently shifted gears on its automotive ambitions, deciding to focus on creating technology for autonomous vehicles, rather than take on the more daunting task of building an entirely new car.

According to news reports, the shift led Apple to cut jobs and trim its auto division.

Apple doesn't break out watch sales figures, but market researchers at IDC estimate the company shipped 1.1 million units in the last quarter.