During Apple’s Q1 2016 earnings call on Tuesday, which corresponds to the fourth calendar quarter of 2015. For the quarter, Apple posted revenue of $75.9 billion and net quarterly profit of $18.4 billion, or $3.28 per diluted share, compared to revenue of $74.6 billion and net quarterly profit of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Both revenue and earnings were company records.
And, as usual, the iPhone is leading the charge. Apple’s other key products, including iPads and Macs, were still sold in the millions, all of which combined to earn the Cupertino-based company billions in revenue in the three month span since its last quarterly earnings report. These results also include sales of the Apple Watch, the new Apple TV, and the iPad Pro.
Apple sold a record 74.8 million iPhones during the quarter, up slightly from 74.5 million a year earlier, while Mac sales were down slightly to 5.3 million units sold from 5.5 million units in the year-ago quarter. iPad sales were also down once again, falling to 16.1 million from 21.4 million despite the introduction of the iPad Pro during the quarter.
“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”
Apple’s guidance for the second quarter of fiscal 2016 includes expected revenue of $50–53 billion and gross margin between 39 and 39.5 percent. Revenue guidance is slightly below analyst expectations.
In supplemental materials, Apple explains that currency headwinds have cost the company 15 percent in earnings over the past 18 months. Using “constant currency” measures, Apple’s revenue for the holiday quarter would have been $80.8 billion for an 8 percent increase year-over-year.
Here’s the official guidance that Apple is forecasting for its fiscal 2016 second quarter:
Apple is providing the following guidance for its fiscal 2016 second quarter:
- revenue between $50 billion and $53 billion
- gross margin between 39 percent and 39.5 percent
- operating expenses between $6 billion and $6.1 billion
- other income/(expense) of $325 million
- tax rate of 25.5 percent
What do you think of Apple’s latest quarterly earnings?
Apple Reports Record Results With with 74.7m iPhones, 16.1m iPads, 5.3m Macs and $75.9 billion in revenue