Apple’s Q4 Earnings Announced, Revenue Down For the First Time in 15 Years


Today via a press release and live conference call, Apple announced their fiscal Q4 2016 earnings report which gives us the latest stats on the company’s revenue stream and how their products are doing on the market. For starters, the company has collected $46.9 billion in revenue this quarter, while $9 billion is pure profit. This is in comparison to Q3’s $42.4 billion revenue collection and $7.8 billion in profit. Obviously, we have Apple’s recent product launches to thank for this jump in earnings, however since both products launched just a week before the close of Q4 for Apple, sales of the iPhone 7/Plus and Apple Watch 2 didn’t help all that much. Nevertheless, these devices definitely played at least a minor role in this quarter’s earnings.

Regarding the number of devices sold, here’s a rundown.

  • iPhone: 45.51 million
  • iPad: 9.28 million
  • Mac: 4.89 million

For the sake of comparison, here’s Q3’s numbers.

  • iPhone: 40.4 million
  • iPad: 9.9 million
  • Mac: 4.2 million

As you can see, an additional 5.11 million iPhones were sold this quarter over last, while Mac sales were also on the rise with another 690,000 units being sold. On the other hand, iPad sales have decreased this quarter with 620,000 less units being sold over Q3. It’s not surprising that iPad revenue is lessening since the hype surrounding the new 9.7-inch Pro model is growing quieter, however the fact that Mac sales have gone up before Apple’s big Mac event on Thursday seems to indicate that this revenue stream may increase substantially after the new Macs have been released. That said, Apple’s holiday quarter for 2016 will likely be pretty interesting.

Regarding shares, Apple’s earnings this quarter result in $1.67/share, opposed to the lower $1.66/share analysts expected from the company.

It’s worth noting that a year ago, Apple’s revenue resulted in $51.5 billion, $4.6 billion more than this quarter’s $46.9 billion. It may not seem serious, but this is the first time Apple’s lost revenue year-on-year in 15 years. It’s unclear what this means for the company, but in my opinion it looks like Apple really needs to step up their game. Hopefully the 10th anniversary iPhone will sell like hotcakes…

For the first quarter of 2017, here’s what Apple’s aiming for:

  • revenue between $76 billion and $78 billion
  • gross margin between 38 percent and 38.5 percent
  • operating expenses between $6.9 billion and $7 billion
  • other income/(expense) of $400 million
  • tax rate of 26 percent

In addition, a quote from CEO Tim Cook and CFO Luca Maestri can be seen below in regards to this quarter’s earnings.

“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” said Tim Cook, Apple’s CEO. “We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record.”

“We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter,” said Luca Maestri, Apple’s CFO. “We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program.”

What’s your take on the latest earnings report from Apple?

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