Apple faces 'make or break' quarter after iPhone sales slump

The strong dollar has driven up the price of the handset and also whittled away how much Apple takes home, with the company saying where it previously made $100 in sales, it is now makes $85.

Jasper Lawler, market Analyst at CMC Markets, said: “Apple faces a make or break quarter. The company has been the leading tech company for the last several years but even though sales remain strong, the stock has been struggling as traders are increasingly wondering what is going to be The Next Big Thing to drive the next phase of growth.”

Apple last night said iPhone sales last quarter grew at their slowest pace since the iconic phone was originally launched in 2007.

The company flogged 74.77 million of the handsets for the three months ending Boxing Day, less than a 1% increased on the prior period last year when 74.5 million were sold.

Cook said the results were “particularly impressive given the challenging global macroeconomic environment,” Cook said.

“We’re seeing extreme conditions unlike anything we have experienced before just about everywhere we look.”

Apple shares were down more than 3.5% at $96.47 in pre-market trading. The move equates to almost a near-$20 billion hit to the company's value.