iPhone sales fall to 51.2M, Apple earns $50.6B in revenue in disappointing March quarter

Posted:
in AAPL Investors edited April 2016
Apple's second fiscal quarter of 2016 officially marks the first time ever that iPhone sales saw a year-over-year decline, as the company shipped 51.2 million handsets on its way to $50.6 billion in total sales.




Net quarterly income for the March frame was $10.5 billion, or $10.90 per diluted share. In contrast, in the same quarter a year ago, Apple earned $58.01 billion in revenue and $13.57 billion in revenue on sales of 61 million iPhones.

Gross margin also dipped this year, falling to 39.4 percent, compared to 40.8 percent in the same period a year ago.
Apple's three major product categories --?iPhone, iPad and Mac --?all saw a year-over-year decline in sales.
Mac sales for the second fiscal quarter of 2016 were 4 million units, down from 4.6 million in 2015. And iPad sales also fell from 12.6 million units a year ago to 10.3 million units this year.

"Our team executed extremely well in the face of strong macroeconomic headwinds," Apple Chief Executive Tim Cook said. "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 device."

The results are consistent with the guidance Apple provided investors back in January. The company had projected revenue between $50 billion and $53 billion, with gross margins between 39 and 39.5 percent.

Looking forward to the fiscal 2016 third quarter, Apple is projecting revenue between $41 billion and $43 billion, and gross margin between 37.5 percent and 38 percent. Operating expenses are forecast between $6 billion and $6.1 billion, with other income of $300 million, and a tax rate of 25.5 percent.

Apple's international business continues to account for a larger share of the company's presence, reaching 67 percent of revenue during the last quarter. The company also announced that its Board of Directors has authorized an increase to its capital return program by $50 billion.

"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 Apple Chief Financial Officer Luca Maestri. "Thanks to the strength of our business results, we are happy to be announcing today a further increase of the program to $250 billion."
«13456789

Comments

  • Reply 1 of 163
    sirlance99sirlance99 Posts: 1,273member
    iPads just keep falling 
  • Reply 2 of 163
    plovellplovell Posts: 818member
    Cue the "Apple is DOOMED" analysts. Blah blah blah.
    nolamacguydavenchiamanfred zornpmz
  • Reply 3 of 163
    macxpressmacxpress Posts: 5,172member
    If Steve were alive they'd still be growing... /s
    bluefire1steveh
  • Reply 4 of 163
    I wish my life was filled with this level of disappointment... 
    mike1buckalecnolamacguymelodyof1974paxmanlatifbpcalichiadysamoriamanfred zorn
  • Reply 5 of 163
    nhughesnhughes Posts: 767editor
    sog35 said:
    Disappointing?

    Not to me.

    Not to anyone who has half a brain.

    Of course Apple could not match what they did last year. The iPhone 6 cycle was a once in a decade super cycle.  People were holding off buying iPhones for YEARS waiting for a bigger phone.

    You need to compare this years results with the iPhone 5s results in 2014.

    In Q2 2014 Apple had $45 billion in revenue.
    In Q2 2016 Apple had $51 billion in revenue.

    That is 13% revenue growth

    I'm pretty sure I have more than half a brain. Mac and iPad sales both also fell year over year, and by considerable amounts. It's a disappointing quarter.
    techlovergatorguylord amhranjackansi
  • Reply 6 of 163
    rwesrwes Posts: 191member
    I wish my life was filled with this level of disappointment... 
    lol - agreed...
  • Reply 7 of 163
    asdasdasdasd Posts: 5,668member
    Next Q looks like disappointing guidance. If services do start to make money then sog might be right about licensing. 
  • Reply 8 of 163
    bobschlobbobschlob Posts: 1,074member
    sog35 said:
    Bought 300 shares at $99. 

    May drop even more but does not matter.

    I'm holding these suckers for 10+ years.
    How old are you?
  • Reply 9 of 163
    shahhet2shahhet2 Posts: 149member
    iPads just keep falling 
    iPhone sales in the recent quarter fell 16.5 percent from a year earlier to 51.2 million from 61.2 million a year earlier.
    iPad shipments in the recent quarter fell 19 percent from a year earlier to 10.3 million.
    Mac sales declined 12 percent to 4.03 million units, less than estimates of 4.6 million.
    iPhones seems to have reached it's peak and need to find another solid source of revenue. 
    I don't see growth in iPhone/iPad/Mac for coming 1-3 years for sure.
    Overall Smart phone market is expected to rise just 7% this year, so low cost market share is still going up.
    It may fall until market accepts the fact that  Apple is Value company and not growth company anymore. (Unlike Google/Amazon/Tesla)
    edited April 2016
  • Reply 10 of 163
    sog35 said:
    $10.5 Billion in profits in 3 months.

    wow.

    so disappointing. LOL.


    But go ahead Wall Street and Media.  Apple will just buyback 60% of the shares in 5 years.
    And borrow more to do that.
  • Reply 11 of 163
    volcanvolcan Posts: 1,799member
    After Hours: 97.74 -6.61 
  • Reply 12 of 163
    rogifan_newrogifan_new Posts: 4,297member
    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.”
    Um, Tim, Wall Street isn't buying your services narrative. Especially since you weren't spinning this narrative when hardware sales weren't missing estimates. Cook needs to find a better narrative fast.
    jackansi
  • Reply 13 of 163
    karmadavekarmadave Posts: 368member
    Apple is still one of the largest, most profitable companies ever. The challenge is that investors demand growth and Apple's sales are not growing at the moment. I would imagine this is extra incentive to get their next generation products to market sooner than later and make sure they have a healthy pipeline of new products. Unfortunately, the iPad and Watch are not selling enough to make up for the decline in iPhone sales. Tim Cook is a very capable executive, but Steve Jobs was really the one who drove the company to bring innovative, new products to market. He simply cannot be replaced...
    josha
  • Reply 14 of 163
    nhughesnhughes Posts: 767editor
    shahhet2 said:
    iPads just keep falling 
    iPhone sales in the recent quarter fell 16.5 percent from a year earlier to 51.2 million from 61.2 million a year earlier.
    iPad shipments in the recent quarter fell 19 percent from a year earlier to 10.3 million.
    Mac sales declined 12 percent to 4.03 million units, less than estimates of 4.6 million.
    I would imagine without SE, sales would have been down over 20% for iPhones.
    Same may be true for iPad Pro.
    Need to find another source of revenue.
    Overall Smart phone market is expected to rise 7% this year, so low cost market share is still going up.
    iPhone SE sales won't be reflected until the June quarter results. 
    snowweaselsockrolidasdasdpatchythepiratecalinetmage
  • Reply 15 of 163
    SpamSandwichSpamSandwich Posts: 33,408member
    Stock now around $97 in after hours. Ugh.
  • Reply 16 of 163
    atlappleatlapple Posts: 496member
    sog35 said:
    Bought 300 shares at $99. 

    May drop even more but does not matter.

    I'm holding these suckers for 10+ years.
    Then you have already lost money. You never learn.
    SpamSandwichjonlcnocbuisingularitytyler82jackansi[Deleted User]
  • Reply 17 of 163
    rogifan_newrogifan_new Posts: 4,297member
    It's pretty bad when even somewhat pro-Apple tech bloggers call it an ugly quarter.

    I hope the 6S is the last phone that ever gets an 'S' designation. Though I fear if the 7 (or whatever Apple calls it) looks a lot like the 6S it's going to face a similar sales trajectory. Seems consumers are just getting burned out on tech and replacement cycles are getting longer.
  • Reply 18 of 163
    brucemcbrucemc Posts: 1,541member
    asdasd said:
    Next Q looks like disappointing guidance. If services do start to make money then sog might be right about licensing. 
    Fundamentally changing Apple's business model, which propelled them to the highest valued non-sovereign company in the world, to a business model which has shown to be a failure for Apple in the past, doesn't seem like sound advice.
    baconstangcalichiadysamorianetmage
  • Reply 19 of 163
    nhughesnhughes Posts: 767editor
    sog35 said:
    nhughes said:
    I'm pretty sure I have more than half a brain. Mac and iPad sales both also fell year over year, and by considerable amounts. It's a disappointing quarter.
    Mac is being canibalzied by iPad and iPhone. Come on dude. Mac is not the future of Apple. Everyone knows PC sales are going into the tank.

    iPad is getting canibalized by bigger iPhones.

    Just look at total revenue in Q2 2014 vs Q2 2016.

    Don't compare Q2 2015. That was an anamoly year.  The iPhone6 had THREE YEARS of pent up demand.  Impossible for Apple to match that.

    If you compare 2016 to 2014 Apple grew revenue 12%.  That is not disappointing at all.
    The stock is down more than 7% so far. People (and investors) are disappointed. I'm just covering the news, I don't have a dog in this fight, and I don't own any stock in Apple. Chalk it up to a grand conspiracy where the "media" is out to get Apple if you want, but sales fell for all three major product categories. That's a disappointment.
    elitistsnob
  • Reply 20 of 163
    rogifan_newrogifan_new Posts: 4,297member
    brucemc said:
    asdasd said:
    Next Q looks like disappointing guidance. If services do start to make money then sog might be right about licensing. 
    Fundamentally changing Apple's business model, which propelled them to the highest valued non-sovereign company in the world, to a business model which has shown to be a failure for Apple in the past, doesn't seem like sound advice.
    It's not sound advice. It's panicking. But the good thing about this it will force Apple to hopefully be a little less conservative. I have high hopes for WWDC. Also Apple's cash pile is now over $230B. I suspect there are going to be a lot of calls for Apple to do more with it than dividends and buybacks. 
    edited April 2016
Sign In or Register to comment.