NEW YORK (TheStreet) -- Apple (AAPL) - Get Report stock is down 3.07% to $96.92 in pre-market trading on Wednesday following the release of the company's first-quarter fiscal 2016 financial results after yesterday's market close.

The iPhone maker has forecast for its first sales decline since 2003 following its slowest-ever rise in iPhone shipments amid weakening demand from China.

Apple expects that revenue for the fiscal 2016 second quarter will range between $50 billion and $53 billion, short of analysts' estimates for revenue of $55.5 billion. For the year-ago quarter, Apple reported revenue of $58 billion.

As widely forecast by analysts, iPhone sales slowed for the most recent quarter. Sales growth increased just 0.4% to 74.8 million units, the lowest rate of growth since the iPhone was launched in 2007, Reuters reports.

The company's March-quarter guidance implies iPhone sales will range between 50 million and 52 million units for the period, which would be its first decline in iPhone sales to date, FBR Capital Markets wrote, Reuters adds.

However, Apple CEO Tim Cook pointed out that 60% of people who owned an iPhone before the launch of the iPhone 6 haven't upgraded to the most recent models, which implies that there is still room to grow, Reuters notes.

In all, Apple reported 2016 first quarter earnings of $3.28 per share on revenue of $75.9 billion. Analysts had forecast for earnings of $3.23 per share on revenue of $76.6 billion.

Insight from TheStreet Research Team:

Jim Cramer, Portfolio Manager of Action Alerts PLUS and Jack Mohr, Director of Research mentioned Apple in a recent post. Here is a snippet of what Jim Cramer and Jack Mohr had to say about the stock:

While investors may be disappointed with the initial 2Q guidance, we'll absorb details of the company's call before we make any judgments. As for the iPhone, units sold came in almost exactly in line with what was expected given that Cook previously had mentioned that they would not be down year over year. Ultimately, we believe that expectations have been reset for the year and the company is set up to outperform given the many catalysts (China, new iPhone upgrade program, new phone models) throughout the balance of this year and in the future.

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-Jim Cramer and Jack Mohr "Apple Beats on Earnings, but Guidance Doesn't Shine" Originally Published on 1/27/2016 on Real Money.

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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Apple's strengths such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, notable return on equity and expanding profit margins outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: AAPL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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