Apple Reports Q3 2016 Earnings of $7.8B on $42.4B in Revenue

[MacRumors]

Apple today announced financial results for the third fiscal quarter (second calendar quarter) of 2016. For the quarter, Apple posted revenue of $42.4 billion and net quarterly profit of $7.8 billion, or $1.42 per diluted share, compared to revenue of $49.6 billion and net quarterly profit of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter. As expected, the results represent the second consecutive year-over-year declines in quarterly revenue and iPhone sales.

Gross margin for the quarter was 38 percent compared to 39.7 percent in the year-ago quarter, with international sales accounting for 63 percent of revenue. Apple also declared a quarterly dividend payment of $0.57 per share, payable on August 11 to shareholders of record as of August 8. The company currently holds $231.5 billion in cash and marketable securities, partially offset by $68.9 billion in long-term debt.

Apple sold 40.4 million iPhones during the quarter, down from 47.5 million a year earlier, while Mac sales were 4.25 million units, down from from 4.8 million units in the year-ago quarter. iPad sales were also down once again, falling to 9.95 million from 10.9 million.

"We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter," said Tim Cook, Apple's CEO. "We had a very successful launch of iPhone SE and we're thrilled by customers' and developers' response to software and services we previewed at WWDC in June."

Apple's guidance for the fourth quarter of fiscal 2016 includes expected revenue of $45.5-47.5 billion and gross margin between 37.5 and 38 percent.

Apple will provide live streaming of its fiscal Q3 2016 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference Call and Q&A Highlights are available in reverse chronological order after the jump.


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Article Link: Apple Reports Q3 2016 Earnings of $7.8B on $42.4B in Revenue

 

[garylapointe]

It makes sense (to me) that they sold less that the previous year.

The previous year many many upgraded to the larger phone, that was spread out over the whole year. Some people didn't wait, they jumped on earlier.

Some people had to wait another year.

Although, I thought the SE sales (from the other holdouts) might have helped.

$42 billion is a respectable amount....

Gary

WOW! I'm first, that doesn't have often (if ever!).

 

[BJMRamage]

The Spikes and Valleys are getting bigger each year.

 

[djcerla]

Huge beat.

Enjoy your shorts now.

 

[KPOM]

A positive earnings result for a change! The WSJ reports that Tim Cook stated that Apple reduced its inventory supply of the iPhone by 4 million units, so iPhone demand is healthier than it looks (i.e. they sold some of what had built up last quarter). iPad sales are a nice surprise, much better than the 9 million that was projected.

 

[seatton]

Apple missed a big opportunity for iPad Pro 9.7. The price is just too high. I have had one and loved it, but many friends of mine just get turned off by the high price.

 

[thisisnotmyname]

I don't follow this very closely but it seems to me the Mac slice of that pie is larger than it has been in recent periods. Am I imagining that?

 

[bushido]

will we get some european sales figures? I am curious to see how they r doing over here

 

[magicschoolbus]

I can't believe they are managing to still sell these macs.. the people that are buying them are buying them purely for image or their mac recently broke and needed a replacement. No-one is buying these for the tech. It's old.

 

[44267547]

Apple needs a home run some where. This may not be the best year for the iPhone 7. Time will tell.

 

[nunes013]

Yet Apple is up after hours I'll bite my tongue

 

[applesith]

I can't believe they are managing to still sell these macs.. the people that are buying them are buying them purely for image or their mac recently broke and needed a replacement. No-one is buying these for the tech. It's old.

Most consumers do not follow Intel's updates. They just want a mac.

 

[djcerla]

Yet Apple is up after hours I'll bite my tongue

AAPL will be at around $120 in two weeks. Reality has kicked in.

 

[Rogifan]

All Wall Street cares about are iPhone sales. Stock up 5% after hours.

 

[555gallardo]

iPhone sales are falling, while Samsung S7 sales beat expectations (26m in the first quarter of its sales)

 

[TMRJIJ]

Wish we got some new Macs but it seems like the iOS devices are making Tim bank:

And yes this image seems slightly slower by a few fps

 

[SMIDG3T]

Just to reiterate, they have 232,000,000,000 in cash. That is ridiculous. Didn't we all expect a decline?

Many people have two-year contracts so they all missed out on the 6s/6s Plus. When the iPhone 7 is out, those people will be eligible for that phone as an upgrade. The jump from the 6 to the 7 will feel huge.

 

[mohremail]

I don't understand why people would blame Apple so much for this, for me, our family used to get new phones all the time, but now with these installment plans or NEXT plans etc, its just not cost effective... the plans still cost a ton, now you have to pay for the phone in full on top of it!? To me much of their slow sales needs to be pointed to the greedy carriers, not so much the product. The iPhone is still a great (and expensive) phone, its just more expensive to acquire now....

 

[xmonkey]

AAPL will be at around $120 in two weeks. Reality has kicked in.

Hahaha, I needed this.

 

[isomorphic]

"Other" category represent!

 

[jayducharme]

Even a poorer quarter for Apple is enviable to other tech companies.

 

[threesixty360]

iPads average selling price will be higher now. They are managing to sell iPads that a 100 dollars more, plus the 12.9 is pretty pricey. So even with lower sales there probably doing better business. In times of difficulty apple retreat to the high end.. Makes sense.

 

[Rogifan]

iPhone sales are falling, while Samsung S7 sales beat expectations (26m in the first quarter of it's sales)

iPhone sales beat expectations hence why the stock is up after hours. You can't compare a brand new phone to a phone that's been on the market for 9 months.

 

[BornAgainMac]

At least the iMac is Skylake. If you have the new Macbook, you can be basically up-to-date in Intel tech. I know people here want the Macbook Pro updated though. It is the flagship Mac for most folks. I hope Apple doesn't kill the Air, the Mini and Mac Pro though.

 

[djcerla]

Hahaha, I needed this.

Ballmer, is it you?