Our revenues grew about $13 billion in the first half of the fiscal year. Even though that’s like adding the total first half revenue of five Fortune 500 companies, our average weekly growth slowed to 19% and our gross margins are closer to the levels of a few years ago. Our fiscal 2012 results were incredibly strong and that’s making comparisons very difficult this year. Last year our business benefited from both high growth and demand for our products and a corresponding growth in channel inventories along with a richer mix of higher gross margin products, a more favorable foreign currency environment and historically low costs. These compares are made further challenging until we anniversary the launch of the iPad mini, which as you know we strategically priced at a lower margin. As Peter will discuss, we are guiding to flat revenues year-over-year for the June quarter along with a slight sequential decline in gross margins.
The decline in Apple’s stock price over the last couple of quarters has been very frustrating to all of us. But Apple remains very strong and will continue to do what we do best. We can’t control items such as exchange rates and world economies and even certain cost pressures. But the most important objective for Apple will always be creating innovative products and that is directly within our control. We will continue to focus on the long-term and we remain very optimistic about our future. We are participating on large and growing markets. We see great opportunities in front of us, particularly given the long-term prospects of the smartphone and tablet market, the strength of our incredible ecosystem which we plan to continue to augment with new services, our plans for expanded distribution and the potential of exciting new product categories.
Take the smartphone market, for example. IDC estimates that this market will double between 2012 and 2016 to an incredible 1.4 billion units annually and Gartner estimates that the tablet market is growing at an even faster rate from 125 million units in 2012 to a projected 375 million by 2016.
Our teams are hard at work on some amazing new hardware, software and services that we can’t wait to introduce this fall and throughout 2014. We continue to be very confident in our future product plans. Apple has many distinct and unique advantages as the only company in the industry with world-class skills in hardware, software and services. We have the strongest ecosystem in the industry with App Stores in 155 countries, iTunes music stores in 119 countries, hundreds of millions of iCloud users around the world; and most importantly, the highest loyalty and customer satisfaction rates in the business. And of course, we have a tremendous culture of innovation with a relentless focus on making the world’s best products that change people’s lives. This is the same culture and company that brought the world the iPhone and iPad and we’ve got a lot more surprises in the works.