He completed one quarter more and as usual, the major technology companies have an appointment with Wall Street. Apple today announced financial results for its third fiscal quarter in the year 2016, closed June 25, 2016. The figures are here and are not anything good, particularly because of the fall in sales of the iPhone, then He has even said that it is the worst quarter in the history of the Apple device.
The company you have registered a quarterly 42.400 million sales and net profit quarterly 7,800 million dollars, equivalent to 1.42 dollars per share. When comparing these figures, we can see a drop of 15% over the same period of the previous year, where sales were 49,600 million dollars and net profit of 10,700 million dollars or 1.85 dollars per share. In general terms, the figures for this quarter are related to low sales in virtually all of its products.
A fall for second consecutive quarter on sales of the iPhone
The iPhone had a quarter difficult for the second consecutive time, as sold 15% less units over the same period of the previous year, staying in 40.4 million units in the quarter. With the Apple mobile obtained 23% less income compared to last year.
Certainly once again factors such as the high price of the dollar and the slowdown in the Chinese economy influenced sales of phones in this market, which is one of the largest in the world for mobile telephony. Therefore, during the financial results call, Tim Cook said that they will continue betting strong to China and they will continue to invest in this Asian country, that represents a great opportunity for growth for the company.
But this was not the only device that reported a decline in sales. This quarter Apple sold 10 million iPads (9% less than the same quarter of the previous year), but the iPad 9.7-inch Pro gave a small boost to the category of tablets from the company, helping this product revenues increase 7%.
Similarly, in this quarter, Apple sold 4.2 million Macs, 11% fewer units when compared with figures for the Q3 of 2015, and 13% less in income. This drop is related to the lack of new products in the category of computers, since this year the company has not made any release.
As for the category of “Other products” where Apple Watch, Apple TV, Apple Watch, Beats, iPod and accessories, the company It reported a fall of 16% over the same quarter of the previous year.
Apple bet services
Services surprised pleasantly prompting the company to exceed Wall Street expectations. According to the firm’s Cupertino, service revenue grew 19 percent, driven by the App Store which reached an all-time high, Apple Music, Apple Pay and iCloud, which are helping the company receives significant income.
“Our business has grown a 19 percent annually over the same period of the previous year and the App Store sales have achieved its all-time high, While our customer base continues to grow and reaches a threshold record”, said Luca Maestri, Chief Financial Officer of Apple.” Therefore, it should be noted that only this quarter Apple reported 6 billion dollars in revenue for services.
For his part, Tim Cook said that the company is very excited by the response from customers and developers to the software and the services presented during in the WWDC of June, because he called iOS 10 as the largest IOS release so far. Even during the call of financial results, Cook said they hope that their dependence on services “is the size of a Fortune 100 company next year”.
Exceeding the expectations of Wall Street
Although one can say that this was a good quarter for sales of Apple products, the company surpassed the expectations of Wall Street, which expected to see a worst case scenario, where earnings per share was located on 1.39 dollars, and not on 1.42 dollars, as it did in reality. Therefore, Apple saw benefit in the bag, where he presents an increase of 5% in the operations after closing.
Sales of the iPad They also encouraged the Cupertino firm on the stock exchange, as expected a different picture when in fact the iPad of 9.7-inch Pro helped revenues rise 7%.
Questions and answers from the press
Now, finally, some of the most interesting places who asked during the traditional press call with Tim Cook to discuss results:
- Pokémon Go and augmented reality. One of the journalists asked Tim Cook on the phenomenon of Pokémon Go and the future of augmented reality, to which Cook replied: “augmented reality can be really big. We have been and we will continue to invest much in this (…) We believe there are great things for customers and a great business opportunity. The first thing is to make sure of make products that work well with products from other developers such as Pokemon, that is why you see so many iPhone chasing Pokemon”.
- On the closing of the services of books and films in China. Faced with this question, Tim Cook said that the financial impact of this fact was small, less than $ 1 million in the months that were available, and said that Apple is working with Chinese Government agencies on the subject.
- On iPhone update rates. Tim Cook stated that update to the 6s cycle was much like the of the 5s, but reached a number of significant improvements that accelerated the renewal process.