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

[Khalanad75]

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

And I will add in...

They work for 95% of the people out there and what they are doing with them. Not everyone watches the tech sites and has to have the latest all the time (yes I know some of the components are several years old, but they are still good enough for most people).

 

[bommai]

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.

I just bought one yesterday for $200 off at Best Buy. Great device at a great price. If your friends are still in the market, get them to buy one. 32GB for $399 and 128GB for $549. I got the 128GB. Use the student discount at Best Buy (you don't need proof). They are already $100 off and students get another $100 off.

 

[xmonkey]

Ballmer, is it you?

Hi Tim!

 

[555gallardo]

Grammar is falling faster, apparently.

You do realize I'm foreign, right?

 

[Asianpork]

The company currently holds $231.5 billion in cash

IN CASH!!!...It makes my head spin just thinking about this. Despite what the market or MR members may currently feel about Apple this is a mind boggling number.

 

[KPOM]

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.

But they wound up selling nearly 1 million more iPads than expected, despite the higher price. So they seem to be positioning it as a margin product now, knowing that the days of 20+ million per quarter are behind them.

 

[djcerla]

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

Maybe they also care about a much healthier product mix or the first iPad revenue growth in 10 quarters, or other things like that.

 

[Mike MA]

It's no rocket science - ship new Macs and the people will buy them.

 

[bozzykid]

A positive earnings result for a change!

They only met the Wall Street expectations because Apple provided guidance last quarter that year over year revenue would again decline for this quarter. I'm not sure how that would be seen as a major positive unless Apple getting their predictions right is the positive.

 

[djcerla]

You do realize I'm foreign, right?

And you do realize that the iPhone was at the end of its producy cycle and the S7 barely mid-cycle, right?

Let's talk numbers again on October, 1st.

 

[captain cadet]

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

Most people don't really look into specs beyond the Screen, the size and how it feels. they will think an intel 17 is better than a i5 even if you got a top of the range i5 and basic last year i7

 

[TheOldBillSherman]

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.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 starts at 2:00 PM Pacific - No need to refresh

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

So it's a rumor that Apple ***** money?

 

[EricTheHalfBee]

So Apple slightly beats Wall Street. Not a great quarter, but not a bad one either.

 

[Rogifan]

First YOY iPad revenue growth in quite some time.

 

[strawbale]

Maybe they also care about a much healthier product mix or the first iPad revenue growth in 10 quarters, or other things like that.

Like you said: "Grammar is falling faster, apparently."

 

[FightTheFuture]

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

I wasn't aware that Samsung released sales figures for their phone lines.

 

[fermat-au]

I assume that the Apple Watch is included in the 5% Other category?
Also are sales of Beats headphones included in this data, or are they a separate company for reporting purposes?

 

[iapplelove]

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.

I really really want one. But I'm at the point in life where my air first gen does everything I need and more still. And does it well,with outstanding battery life. I see a trend where more and more are upgrading less, and holding onto a device for a few years.

 

[strawbale]

And you do realize that the iPhone was at the end of its producy cycle and the S7 barely mid-cycle, right?

Let's talk numbers again on October, 1st.

producy? (cycle)

 

[KPOM]

I assume that the Apple Watch is included in the 5% Other category?
Also are sales of Beats headphones included in this data, or are they a separate company for reporting purposes?

They are both in Other. The comparison is apples-to-oranges since last year included the launch and initial demand for the Apple Watch.

 

[SgtPepper12]

And I will add in...

They work for 95% of the people out there and what they are doing with them. Not everyone watches the tech sites and has to have the latest all the time (yes I know some of the components are several years old, but they are still good enough for most people).

When you pay 2000 bucks for a laptop, you are not really after "good enough", you clearly want the best.

 

[keysofanxiety]

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.

GPUs, yes. Xeon CPUs in the Mac Pro, yes.

Mobile CPUs in the MacBook Pros, no. Intel haven't released a chip worth upgrading to.

 

[Fortimir]

Modern business culture is insane. "If you're not improving quarter over quarter, you're failing."

Shareholders aren't satisfied by just making money; they're only satisfied by making more money every quarter. It's a depressing and unsustainable position.

 

[Mindbomb2000]

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.

I agree... I know a lot of people using the 5/5s (myself included), who are primed for the 7. I normally am on the "s" cycle, for the simple fact that I think the "s" is where the rough edges are sorted out. I never understood the consumers demand to have the first iteration of a new design. In actuality, the proper way to design things is to change the form factor only when it is necessary to improve the function. I skipped the 6s and he fact that the 7 is really a 6ss thrills me.

 

[Cineplex]

Say what you want. This is the beginning of the end. iPhone demand is falling off. Watch bands, Android looking phones, and outdated Macs can only take you so far. Time to clean house before the current administrations destroys the farm.