• by Gavin O'Malley  @mp_gavin, January 29, 2019

Apple on Tuesday reported fiscal first-quarter revenue of $84.3 billion, which represented a 5% decline year-over-year.

Apple CEO Tim Cook called the performance “disappointing” in an earnings report. Among other issues, the tech titan said iPhone revenue declined 15% year-over-year.

On the bright side, Cook pointed out that Apple’s active installed base of devices reached an all-time high of 1.4 billion in the first quarter.

For the quarter ended December 29, total revenue from products (other than iPhones) and services grew 19%, while services revenue increased 19% to reach an all-time high of $10.9 billion.

Revenue from sales of Macs, Apple’s wearables, Home products and various accessories also sold well during the quarter.

“We generated very strong operating cash flow of $26.7 billion during the December quarter,” Luca Maestri, Apple’s chief financial officer, noted in the earnings report.

To avoid catching investors off guard, Apple cut its fiscal first-quarter sales forecast earlier in the month.

In a letter to investors, Cook attributed Apple’s woes to slowing iPhone sales in China.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” said Cook at the beginning of January.

Apple was already aware of multiple market challenges when it initially floated fiscal first-quarter guidance last year. “This turned out to have a significantly greater impact than we had projected,” Cook admitted. 

Looking ahead to the second quarter, Apple is expecting revenue to reach somewhere between $55 billion and $59 billion.