Tag Archives: earnings

Apple reports first quarterly revenue decline in 13 years

On April 26, Apple reported its 2016 second quarter financial results, and for the first time in 13 years, it is facing a decline in quarterly revenue. We’re so used to seeing record revenues from Tim Cook’s company, but you cannot deny that you didn’t see this coming. A quick look at the numbers will shine a light on where this inevitable slump sprouted from.

Apple posted a quarterly revenue of $50.6 billion and record quarterly net profit of $10.5 billion. Compare this to one year ago, that’s down from revenue of $58 billion and net profit of $13.6 billion. Says CEO Tim Cook in a press release: “Our team executed extremely well in the face of strong macroeconomic headwinds. 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.”

iPhones took a hard hit this quarter, with 51.2 million units sold, compared to 61.2 million in the year-ago quarter. iPads also went on a noticeable decline, with 10.3 million units sold, compared to 12.6 million. Same story for Mac, with 4 million units sold, compared to 4.6 million. Across the board, as you can clearly see, Apple had a tough time living up to its record-breaking numbers this quarter across all three of its major product categories including phones, tablets, and computers.

Now, there is a bright spot among this dour news, and you’ll find it in a category Apple calls Other Products. Though Apple does not report units sold for iPod, Apple TV, and Apple Watch, it does share the overall revenue those products accumulated in the quarter. Other Products amassed $2.2 million in Q2 ’16, up from Q2 ’15’s $1.7 million. In addition, and as Cook mentioned in his quote, Apple’s Internet-connected Services sector (read: iTunes & App Stores, Apple Music) is also on the rise reaching $6 million in revenue, up from the year-ago quarter’s $5 million.

Despite the optimism there, however, Apple’s stock dropped some points following news of the overall quarterly revenue decline. With Apple’s Wordwide Developer’s Conference (WWDC) around the corner, here’s to hoping the tech giant (and still the world’s most valuable company) has some exciting announcements up its sleeve (iPhone 7? iOS 10? The shrouded in mystery Apple Car?) to pick up some forward momentum!

Looking ahead to the third fiscal quarter of 2016, Apple CFO Luca Maestri expects revenue between $41 billion and $43 billion.

[Via Apple]

Apple squeaks out record 2016 Q1 results, braces for revenue decline

On January 26, Apple reported its 2016 first quarter financial results. Apple posted a record quarterly revenue of $75.9 billion and record quarterly net profit of $18.4 billion. Compare this to one year ago, that’s up from revenue of $74.6 billion and net profit of $18 billion. Says CEO Tim Cook in a press release: “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. 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.”

It was another “record quarter” for Apple, but there were some startling yet inevitable declines across its product sales. Let’s break it down by product category and then discuss. Apple sold 74.8 million iPhones in the quarter (compared to 74.5 million in the year-ago quarter); 16.1 million iPads (compared to 21.4 million); and 5.3 million Macs (compared to 5.5 million). As for iPod, Apple TV, and Apple Watch, the company stuffs these products into a single category called Other Products and does not disclose how many units of each were sold. However, what we do know is that this division accounted for $4.4 billion of Apple’s revenue this quarter (compared to 2.7 million in the year-ago quarter).

A quick look at those numbers and you’ll come to realize that Apple’s finally hitting a plateau with its innovative product lineup. The iPhone is the company’s most profitable product today, and yet its sales were up just 0.4 percent compared to last year’s first quarter results. The iPad and Macs didn’t fare so well either. Tablet sales dropped 25 percent compared to last year, and computer sales went south by 4 percent. Apple CFO Luca Maestri addresses these significant slumps when predicting 2016’s second fiscal quarter revenue to fall between $50-$53 billion; if that happens, it would mark a year-over-year decline in revenue for the company for the first time in 13 years.

It isn’t all bad news for (still) one of the most profitable companies in the world. Apple’s touting a 63 percent jump in sales in its Other Products category that now includes hot holiday gifts like the new-and-improved Apple TV and Apple Watch. In addition, its Internet-connected Services jumped 27 percent year-over-year; iTunes, the App Stores, and Apple Music helped rake in $6.1 billion in revenue this quarter.

Despite the declines due to “the overall [economic] malaise in virtually every country in the world” and in particular the economic “softness” in China, Tim Cook is bullish on Apple’s future. With an active install base of 1 billion devices (that is iPhone, iPad, Mac, iPod touch, Apple TV and Apple Watch devices that have been engaged in Apple’s services within the past 90 days) and strong customer service and retention rates that are “second to none” in the industry, Cook is unwavering in his belief that Apple will continue to grow as new hardware, software, and services will push his company into the future. It’s just a sad thought knowing that the next quarter will likely be the first one in awhile we won’t be calling a new record.

[Via Apple; Engadget 1, 2; Deadline]

Apple reports 2015 Q4 results: $51.5 billion revenue & $11.1 billion net profit

On October 27, Apple reported its 2015 fourth quarter financial results. Apple posted a quarterly revenue of $51.5 billion and net profit of $11.1 billion. Compare this to one year ago, that’s up from revenue of $42.1 billion and net profit of $8.5 billion. Says CEO Tim Cook in a press release: “Fiscal 2015 was Apple’s most successful year ever, with revenue growing 28% to nearly $234 billion. This continued success is the result of our commitment to making the best, most innovative products on earth, and it’s a testament to the tremendous execution by our teams. We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV which begins shipping this week.”

Now let’s break it down by product category. Apple sold 48 million iPhones in the quarter (compared to 39.2 million in the year-ago quarter); 9.8 million iPads (compared to 12.3 million); and 5.7 million Macs (compared to 5.5 million). As for iPod, Apple TV, and Apple Watch, the company stuffs these products into a single category called Other Products and unfortunately does not disclose how many units of each were sold. However, what we do know is that this division accounted for $3 billion of Apple’s revenue this quarter (compared to 1.9 million in the year-ago quarter).

Looking ahead to the first fiscal quarter of 2016, Apple CFO Luca Maestri expects revenue between $75.5 billion and $77.5 billion.

[Via Apple]

Apple reports 2015 Q3 results: $49.6 billion revenue & $10.7 billion net profit

On July 21, Apple reported its 2015 third quarter financial results. Apple posted a record quarterly revenue of $49.6 billion and net profit of $10.7 billion. Compare this to one year ago, that’s up from revenue of $37.4 billion and net profit of $7.7 billion. Says CEO Tim Cook: “We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch. The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

Now let’s break it down by product category. Apple sold 47.5 million iPhones in the quarter (compared to 35.2 million in the year-ago quarter); 10.9 million iPads (compared to 13.3 million); and 4.8 million Macs (compared to 4.4 million). As for iPod, Apple TV, and Apple Watch, the company stuffs these products into a single category called Other Products and unfortunately does not disclose how many units of each were sold. However, what we do know is that this division accounted for $2.6 billion of Apple’s revenue this quarter.

Interested in how Apple Watch performed out of the gate? The company’s not sharing exact figures, but in an interview with The New York Times, Apple CFO Luca Maestri says that “the watch’s sales in its first nine weeks exceeded those of the iPhone and iPad in their first nine weeks of availability.” Also, Maestri informed Engadget during the earning call today that the watch “was responsible for “over 100 percent” of the “Other Product” category’s growth in the quarter and offset any losses from iPod and accessory sales.”

Looking ahead to the fourth fiscal quarter of 2015, Maestri expects revenue between $49 billion and $51 billion.

[Via Apple]

Apple reports ’15 Q2 results: $58 billion revenue & $13.6 billion net profit

On April 27, Apple reported its 2015 second quarter financial results. Apple posted a record quarterly revenue of $58 billion and net profit of $13.6 billion. Compare this to one year ago, that’s up from revenue of $45.6 billion and net profit of $10.2 billion. Says CEO Tim Cook: “We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever. We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

Now let’s break it down by product category. Apple sold a record 61 million iPhones in the quarter (compared to 43.7 million in the year-ago quarter); 12.6 million iPads (compared to 16.4 million); and 4.6 million Macs (compared to 4.1 million). Apple does not specifically disclose sales figures for the iPod and Apple TV. As for the recently released Apple Watch, it’s too early to tell, but you can expect Cook and co. to share numbers in the upcoming third quarter.

Looking ahead to the third fiscal quarter of 2015, Apple CFO Luca Maestri expects revenue between $46 billion and $48 billion.

In related Apple news, Cook confirmed during the earnings conference call that Best Buy stores will (finally) support Apple Pay later this year. Also, if you’re a Discover cardmember, you will be able to get in on the Apple Pay fun this fall.

[Via Apple; Engadget; BusinessWire]

Apple reports ’15 Q1 results: $74.6 billion revenue & $18 billion net profit

On January 27, Apple reported its 2015 first quarter financial results. Apple posted a record quarterly revenue of $74.6 billion and net profit of $18 billion. Compare this to one year ago, that’s up from revenue of $57.6 billion and net profit of $13.1 billion. Says CEO Tim Cook: “We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high. Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”

Now let’s break it down by product category. Apple sold a record 74.5 million iPhones in the quarter (compared to 51 million in the year-ago quarter); 21.4 million iPads (compared to 26 million); and 5.5 million Macs (compared to 4.8 million). iPod sales surely declined as they do every year these days, and the company no longer discloses specifically how many units from this product line are sold.

Up to now, consumers have only privy to a somewhat large release window regarding the highly anticipated Apple Watch. In atypical Apple fashion, Cook narrowed that timeframe down to a specific launch month to eager reporters on an earnings conference call. The Apple Watch, previously pegged for an “early 2015” release, will hit the market in April.

Looking ahead to the second fiscal quarter of 2015, Apple CFO Luca Maestri expects revenue between $52 billion and $55 billion.

Update: APPL stock is soaring following the release of these record results. That’s more than likely because of the unexpectedly high $74.6 billion revenue. At the end of last quarter, CFO Maestri expected revenue between $63.5 billion and $66.5 billion. The company undershot, and the market is currently respecting it for that.

 

[Via Apple]

Apple reports 2014 Q4 results: $42.1 billion revenue & $8.5 billion net profit

On October 20, Apple reported its 2014 fourth quarter financial results. Apple posted a record quarterly revenue of $42.1 billion and net profit of $8.5 billion. Compare this to one year ago, that’s up from revenue of $37.5 billion and net profit of $7.5 billion. Says CEO Tim Cook: “Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus. With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015.”

Now let’s break it down by product category. Apple sold 39.3 million iPhones in the quarter (compared to 33.8 million in the year-ago quarter); 12.3 million iPads (compared to 14.1 million); and 5.5 million Macs (compared to 3.8 million). iPod sales continue to decline; Apple reports 2.6 million units sold, down 24 percent from the year-ago quarter.

Looking ahead to the first fiscal quarter of 2015, Apple CFO Luca Maestri expects revenue between $63.5 billion and $66.5 billion.

[Via Apple]

Apple reports 2014 Q1 earnings: $13.1b profit on $57.6b revenue

On January 27 Apple reported its 2014 first quarter financial results. Apple posted a record $13.1 billion profit on $57.6 billion in revenue. Compare this to one year ago, that’s the same $13.1 billion profit and up on $54.5 billion in revenue. Says CEO Tim Cook: “We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services. We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”

Now let’s break it down by product category. Apple sold a record 51 million iPhones in the quarter (compared to 47.8 million in the year-ago quarter); a record 26 million iPads (compared to 22.9 million); and 4.8 million Macs (compared to 4.1 million). iPod sales continue to decline at a steady rate.

Looking ahead to the second fiscal quarter of 2014, Apple CFO Peter Oppenheimer expects revenue between $42 billion and $44 billion.

[Via Apple]

Apple reports 2013 Q4 earnings: $7.5b profit on $37.5b revenue

On October 28 Apple reported its third quarter financial results. Apple posted a $7.5 billion profit on $37.5 billion in revenue. Compare this to one year ago, that’s down from a profit of $8.2 billion and slightly up on $36 billion in revenue. Says CEO Tim Cook: “We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones. We’re excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS.”

Now let’s break it down by product category. Apple sold 33.8 million iPhones in the quarter (compared to 26.9 million in the year-ago quarter); 14.1 million iPads (compared to 14 million); and 3.8 million Macs (compared to 4.6 million). iPod sales have declined year after year ever since the introduction of the iPhone, and interestingly Apple is no longer reporting how many units sold in this product department.

Looking ahead to the first fiscal quarter of 2014, Apple CFO Peter Oppenheimer expects revenue between $55 billion and $58 billion.

[Via Apple]

Apple reports 2013 Q3 earnings: $6.9b profit on $35.3b revenue

On July 23 Apple reported its third quarter financial results. Apple posted a $6.9 billion profit on $35.3 billion in revenue. Compare this to one year ago, that’s down from a profit of $8.8 billion and slightly up on $38 billion in revenue. Says CEO Tim Cook: “We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services. We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

Now let’s break it down by product category. Apple sold 31.2 million iPhones in the quarter (compared to 26 million in the year-ago quarter); 14.6 million iPads (compared to 17 million); 3.8 million Macs (compared to 4 million); and iPod sales dropped 32 percent year-over-year.

Looking ahead to the fourth fiscal quarter of 2013, Apple CFO Peter Oppenheimer expects revenue between $34 billion and $37 billion.

[Via Apple]

Apple reports 2013 Q2 earnings: $9.5b profit on $43.6b revenue

 

On April 23 Apple reported its second quarter financial results. Apple posted a $9.5 billion profit on $43.6 billion in revenue. Compare this to one year ago, that’s down from a profit of $11.6 billion on $39.2 billion in revenue. That’s the first year-over-year drop in profits and revenue in nearly a decade for the tech company. But still, stay assured Apple is doing just fine in the big scheme of things; they currently have a healthy cash balance of $145 billion. Says CEO Tim Cook: “We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad. Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

Now let’s break it down by product category. Apple sold 37.4 million iPhones in the quarter (compared to 35.1 million in the year-ago quarter); 19.5 million iPads (compared to 11.8 million); just under 4 million Macs (compared to 4 million); and 5.6 million iPods (compared to 7.7 million). Elsewhere, the App Store has seen 45 billion downloads, and iCloud has amassed 300 million users.

Looking ahead to the third fiscal quarter of 2013, Apple CFO Peter Oppenheimer expects revenue between $33.5 billion to $35.5 billion.

[Via Apple; Engadget]

Apple reports 2013 Q1 earnings: $13.1b profit, $54.5b revenue, Macs up 1%, iPhones up 58%, iPads up 26%, iPods down 19%

On Wednesday Apple reported its first quarter financial results and the company broke more records, naturally. Apple posted a $13.1 billion profit on $54.5 billion in revenue. Compare this to one year ago, that’s up from a profit of $13.06 billion on $46.33 billion in revenue. Says CEO Tim Cook: “We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter. We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

Now let’s break it down by product category. Apple sold 47.8 million iPhones in the quarter (compared to 37 million in the year-ago quarter); 22.9 million iPads (compared to 15.4 million); 4.1 million Macs (compared to 5.2 million); and 12.7 million iPods (compared to 15.4 million). The company’s “hobby” Apple TV sold 2 million units representing a 60 percent unit increase over the year-ago quarter.

Looking ahead to the second fiscal quarter of 2013, Apple CFO Peter Oppenheimer expects revenue between $41-$43 billion.

Leading up to and following Apple’s quarterly financial results, its stock (AAPL) took a nosedive below the $500 threshold. Today, January 24, it dropped 63.51 points (12.35%) to $450.50 when the market closed. After hours it dropped another 2.13 points to $448.37. If there was a time to announce an exciting new product that promises to revolutionize the way we watch and consume TV content, that time would be now.

[Via Apple]