Apple financial report Q4 2016: Summary
For Q4 2016, Apple reports:
- Quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share, down 9 percent on revenue of $51.5 billion and down 19 percent on net income of $11.1 billion, or $1.96 per diluted share, in the same quarter a year ago. (It’s the third quarter in a row to be down in revenue year-on-year.)
- Gross margin of 38 percent, compared to 39.9 percent a year ago.
- International sales accounted for 62 percent of the quarter’s revenue.
- Apple’s board of directors has declared a cash dividend of $.57 per share of common stock. The dividend is payable on 10 November.
- The company also reported results for the fiscal year 2016. Yearly revenue was $215.6bn, down 8 percent on the $233.7bn it recorded in fiscal 2015.
- Finally, Apple reported that it has cash reserves of $237.6bn, a sequential increase of $6.1bn.
Tim Cook commented: “Our results for the September quarter were very strong. We’re thrilled with the customer response to iPhone 7 and iPhone 7 Plus; these are the best iPhones we’ve ever made.” He called fiscal 2016 “another incredible year”. And chief financial officer Luca Maestri pointed out the revenue was up in some emerging markets, including Russia, Turkey and the Middle East.
But it’s impossible to get away from the fact that these are mildly disappointing numbers by Apple’s stratospheric standards.
Apple financial report Q4 2016: How does this compare with Apple’s predictions?
It’s at the upper end of what was expected. While posting Apple’s Q3 results back in July, Tim Cook offered the following cautious guidance for Q4:
- Revenue between $45.5 billion and $47.5 billion
- Gross margin between 37.5 percent and 38 percent
- Operating expenses between $6.05 billion and $6.15 billion
- Other income (expense) of $350 million
- Tax rate of 25.5 percent
Apple financial report Q4 2016: How many iPhones did Apple sell?
Apple sold 45.513 million iPhones in Q3 2016. That’s 5.3 percent down on the same quarter last year: in Q4 2015 Apple sold 48.046 million iPhones.
With an ASP (average selling price) of $619 in Q4, Apple’s iPhone sales generated a revenue of $28.16bn this quarter. That represents a year-on-year drop of 12.6 percent on the $32.209 billion Apple made from iPhone sales in Q4 2015.
Selling 45 million phones is a phenomenal performance by almost any company’s standards: a huge number of phones and a colossal amount of revenue. But by Apple’s standards it’s actually a little disappointing, and the importance of the iPhone to Apple’s fortunes is such that even this small dip in sales is a little worrying.
Cook tried to put a brave face on the numbers, referring to “continued improvement in year-over-year performance compared to the last two quarters” and pointing out that iPhone sales were up year-on-year “in 33 of our top 40 markets”. Which is all very well, but presumably those 33 don’t include China or the US.