Apple Announces Q2 2016 Revenue: 51.2M iPhones, 10.2M iPads, $50.6B revenue

Apple on Tuesday announced financial results for the second fiscal quarter (first calendar quarter) of 2016. The Cupertino company fulfilled expectations that it was going to report its first ever year-over-year decline in iPhone sales, moving just 51.2 million handsets vs. 61.2 million in Q2 last year. Revenue is also down substantially from the year-ago quarter.

Gross margin for the quarter was 39.4 percent compared to 40.8 percent in the year-ago quarter, with international sales accounting for 67 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.57 per share, up from $0.52. The dividend is payable on May 12 to shareholders of record as of May 9. The company currently holds $233 billion in cash and marketable securities, partially offset by $77 billion in long-term debt.

Apple® today announced financial results for its fiscal 2016 second quarter ended March 26, 2016. The Company posted quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion, or $1.90 per diluted share. These results compare to revenue of $58 billion and net income of $13.6 billion, or $2.33 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 40.8 percent in the year-ago quarter. International sales accounted for 67 percent of the quarter’s revenue.

Here is a breakdown of Q2 2016 numbers compared to figures from Q2 2015.

  • Revenue: $50.6 billion versus $58 billion last year
  • iPhones: 51.2 million versus 61.2 million last year
  • iPads: 10.2 million versus 12.62 million last year
  • Macs: 4 million versus 4.56 million last year

Apple’s Q2 2016 earnings

In addition to the increase in the dividend payment, Apple says it will once again expand its share repurchase authorization by an additional $35 billion to $175 billion and the company says it expects to spend over $250 billion in cash under its capital return program by the end of March 2018.

Apple’s Chief Financial Officer, Luca Maestri, had this to say:

“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Tim Cook, Apple’s CEO. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”

“We generated strong operating cash flow of $11.6 billion and returned $10 billion to shareholders through our capital return program during the March quarter,” said Luca Maestri, Apple’s CFO. “Thanks to the strength of our business results, we are happy to be announcing today a further increase of the program to $250 billion.”

Last quarter was a massive quarter for Apple, with the company earning $75.9 billion in revenue thanks to selling 74.7 million iPhones, 16.1 million iPads, and 5.3 million Macs. In comparison, the last few months were much quieter for Apple. Specifically, this quarter marks the first year-over-year revenue decline for the company since 2003.

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