After first revenue decline in 15 years, Apple forecasts return to growth in holiday quarter

Posted:
in General Discussion edited October 2016
As expected, Apple on Tuesday posted its first year-over-year revenue decline in 15 years for the fourth fiscal quarter of 2016, but the company is guiding for a rosy forecast next quarter on strong anticipated iPhone sales.




Apple is forecasting revenue between $76 billion and $78 billion for the three months ending in December, typically a lucrative quarter thanks to the holiday shopping season. The guidance is up from the $75.9 billion performance put in at the same time last year.

According to the Financial Times, Apple CFO Luca Maestri told reporters initial demand for iPhone 7 "bodes well as we get into the December quarter." Separate reports had Maestri saying supply still lags demand for iPhone 7 Plus models and all Jet Black iPhone 7 versions.

For the first quarter of 2017, the company is guiding gross margin between 38 percent and 38.5 percent, with operating expense set between $6.9 billion and $7 billion. The usual 26 percent tax rate applies.

Apple narrowly beat Wall Street expectations for the fourth quarter of 2016 with $9 billion in net income on revenues of $46.9 billion, largely driven by iPhone sales of 45.5 million. Large numbers compared to tech sector competitors, the performance marked the first decline in revenues for Apple since 2001.

Comments

  • Reply 1 of 14
    DOOOOOOOOOOM
  • Reply 2 of 14
    No worries tho, Q4 is going to kick some serious ass
  • Reply 3 of 14
    eightzeroeightzero Posts: 2,195member
    Something surreal about listening to an Apple earnings call...on an iPhone 7. Was like seeing network AppleTV commercials...on AppleTV.
  • Reply 4 of 14
    muadibemuadibe Posts: 124member
    No worries tho, Q4 is going to kick some serious ass
    These results are Q4.  I think you mean Q1 2017. 
    anton zuykov
  • Reply 5 of 14
    The beleaguered computer maker... Yeah. Sorry press, those days are over. Talk about Samsung.
    caliwatto_cobra
  • Reply 6 of 14
    I was sooooo disappointed when my phone no-longer fit in my hand. I have no desire for the 6,7, or any of the plus versions. Maybe I'm the only one...
    [Deleted User]
  • Reply 7 of 14
    onejeff said:
    I was sooooo disappointed when my phone no-longer fit in my hand. I have no desire for the 6,7, or any of the plus versions. Maybe I'm the only one...
    This is why I'm glad to see that the iPhone SE keeps getting upgraded internals. There is also a real possibility that when apple revises the current handset design (presumably iPhone 8), they'll also revise the SE to the 6's round corner design. As for the decline, it's the result of a luxury problem: demand being so great for the 6 that it artificially brought forward sales that would have normally landed in fiscal 2016 - the overall trend is still growth, with 7 set to outpace 6.
    watto_cobracali
  • Reply 8 of 14
    Oh nooooooo.... Apple is dead!
  • Reply 9 of 14
    damonfdamonf Posts: 214member
    I hope Apple has made a ton of AirPods. I think they're going to sell very well, as well as the new Beats models with the W1 chip. 
    watto_cobracali
  • Reply 10 of 14
    onejeff said:
    I was sooooo disappointed when my phone no-longer fit in my hand. I have no desire for the 6,7, or any of the plus versions. Maybe I'm the only one...
    You are. Get over it.
    lordjohnwhorfincali
  • Reply 11 of 14

    damonf said:
    I hope Apple has made a ton of AirPods. I think they're going to sell very well, as well as the new Beats models with the W1 chip. 
    Yeah! I'm actually torn between the two. Love my PowerBeats2 Wireless, with the only irritation being the connecting wire keeps getting snagged on my neck/collar. Really want to see how well the Air Pods fit and stay put with activity/sweating.
    cali
  • Reply 12 of 14
    onejeff said:
    I was sooooo disappointed when my phone no-longer fit in my hand. I have no desire for the 6,7, or any of the plus versions. Maybe I'm the only one...
    You are. Get over it.
    You are not at all 

    I hate the 6 and 7 with a passion. Tried and just can't force myself to like it. Nasty oversized slippery thing. The SE was a breath of fresh air and allowed me to get rid of the 6. First iPhone I never upgraded to, the 6S. From the original to through.

    Ignore damonf and his narrow vision coupled with a lack of empathy. Sickening how Apple has attracted this endless list of people who can't see the wood from the trees of different needs and desires
    edited October 2016 r2d2onejeff
  • Reply 13 of 14
    koopkoop Posts: 337member
    donjuan said:
    Oh nooooooo.... Apple is dead!
    DOOOOOOOOOOM
    Keep it up. Need at least 4 more ironic apple is doomed posts before I get a free sandwich at Subway.
  • Reply 14 of 14
    calicali Posts: 3,495member
    onejeff said:
    I was sooooo disappointed when my phone no-longer fit in my hand. I have no desire for the 6,7, or any of the plus versions. Maybe I'm the only one...
    You are. Get over it.
     He doesn't know the SE exists. 

     Would love a 2017 version. 
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