Apple is going to have a tough year

Suddenly, things aren't looking great for Apple in the near term.

First, iPhone sales could go negative for the first time in history. Second, iPad sales are shrinking, and show no sign of improving. Third The Apple Watch is not the blockbuster people thought it was going to be.

While, Apple TV is OK, but nothing revolutionary, and Apple's software and services — Apple Music, Maps, Health, Photos — are just OK.

So as we enter 2016, Apple is poised for its toughest year in a while.

But we shouldn't forget that, Apple is the world's biggest company, as measured by market value, with a $595 billion market cap. It has $206 billion in cash on hand. The company had $13.5 billion in cash flow last quarter and it is expected to do $77 billion in sales this quarter.

So even a "tough" year for Apple will be a great year that would be a record breaker for any other company, as measured by profits and revenue.

The reason Apple generates mind-boggling revenue is that it makes the best version of the most important consumer-electronic product in history. The iPhone is the best smartphone, and the smartphone is the one gadget above all else — TV, video-game console, laptop, or even a car for some people — that matters most. Apple will be able to sell millions of iPhones every year for years to come and the company will continue to throw off insane amounts of cash.