Apple sells 74.8M iPhones, rakes in $75.9B in revenue in company's biggest quarter ever

Posted:
in AAPL Investors edited January 2016
The 2015 holiday shopping season was the biggest quarter in Apple's history, with profits of $18.4 billion earned thanks to yet another record performance for the iPhone.




Apple's $18.4 billion in profit came from $75.9 billion in revenue. As usual, Apple's success was driven by the iPhone, which sold a record 74.8 million units in the first quarter of fiscal 2016.

That means iPhone sales continued their trend of year over year growth, which has occurred every quarter since the product launched in 2007. In the same quarter a year ago, Apple sold 74.5 million iPhones

"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," said Tim Cook, Apple's CEO. "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."

Mac sales for the quarter reached 5.3 million units, which was down 4 percent year over year. And the iPad saw 16.1 million units sold, a 25 percent decrease from the same period a year ago.

Gross margin was 40.1 percent, compared to 39.9 percent in the year-ago quarter. Earnings per share was $3.28, up from $3.06 a year ago.

International sales accounted for 66 percent of the quarter's revenue.

"Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment," said Luca Maestri, Apple's CFO. "We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program."

Looking ahead to its second quarter of fiscal 2016, Apple is projecting revenue between $50 billion and $53 billion, with gross margins between 39 and 39.5 percent. Operating expenses are expected to be between $6 billion and $6.1 billion, with other income of $325 million, and a tax rate of 25.5 percent.
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Comments

  • Reply 1 of 135
    Great great quarter. Apple blows the doors off once again.
    latifbpargonautcalitdknoxpmz
  • Reply 2 of 135
    quadra 610quadra 610 Posts: 6,757member
    Can I say it this time? I've never had the pleasure. 

    Doomed™
    ericthehalfbeepscooter63equality72521latifbpirelandanton zuykovargonautcalisuddenly newtonnolamacguy
  • Reply 3 of 135
    A 25% YOY decline in iPads is not a good sign. 
    lord amhrancanukstorm
  • Reply 4 of 135
    And Apple is doomed....again!

    LOL
    davebarnesericthehalfbeeanton zuykovtdknox
  • Reply 5 of 135
    So according to Neil Cybart in my Twitter feed it looks like every product line was a miss vs. expectations and Q2 is low guidance. But CNBC isn't as negative as I thought they would be and the stock is flat after market.
  • Reply 6 of 135
    msanttimsantti Posts: 1,377member
    Yawn.
    davebarnesasdasd
  • Reply 7 of 135
    So according to Neil Cybart in my Twitter feed it looks like every product line was a miss vs. expectations and Q2 is low guidance. But CNBC isn't as negative as I thought they would be and the stock is flat after market.
    Mostly because a miss was priced into the stock already, I feel. 
  • Reply 8 of 135
    msanttimsantti Posts: 1,377member
    A 25% YOY decline in iPads is not a good sign. 
    A sore spot but have been declining for like 2 years.

    Just do not have the year (or two) over year upgrades like the iPhone has.

    Of ourse, they got 18 billion in profits with sucky iPad sales.
    edited January 2016 davennolamacguypmz
  • Reply 9 of 135
    Not too excited for next quarter.
    For year 2015, 3 month ending in March Apple had posted quarterly revenue of $58 billion.
    For year 2016, 3 months ending in March Apple is forecasting 
    quarterly revenue of $50-$53 billion. (Mid point $51.5 which is down for $58 billion)
    That points to over 11% quarter over quarter revenue decline despite adding lot more service revenue streams.
    Can't wait for some good Car or some other big announcement to get stock back up.
    I guess for now, it's in hold period until something big comes along.
    This was expected until something big comes along. Service revenue are not making much dent and now the iPhone revenue is in declining mode from next quarter.

    edited January 2016
  • Reply 10 of 135
    sog35 said:
    Revenue would have been $81 billion if not for currency head winds.
    But basically these supply chain rumors weren't all BS. Tim Cook all but confirmed that Q2 iPhone sales will be down YOY. And there was no mention of iPad in the press release which makes me think it was nothing to write home about.
  • Reply 11 of 135
    Apple CFO says they're seeing softness in China, especially Hong Kong. Also predicting March revenue will be down YOY. Last time that occurred was before iPod.
    edited January 2016
  • Reply 12 of 135
    Well Apple is certainly doomed. The BBC says "Apple reports slowest iPhone sales growth since the product's launch."
  • Reply 13 of 135
    We've had Douglas Adams before: that about wraps it up. iPads miss. Macs miss. Again no watch details, hence obviously a miss. Oh, and the car gets trashed as well. No one should give a darn about the biggest profit ever in a Q. Or anything potentially positive about Apple. Sell it out and give the shareholders back their money. Let's end the agony. 

    /s



    Well done, Apple. 
    hydrogen
  • Reply 14 of 135
    asdasdasdasd Posts: 5,686member
    So according to Neil Cybart in my Twitter feed it looks like every product line was a miss vs. expectations and Q2 is low guidance. But CNBC isn't as negative as I thought they would be and the stock is flat after market.
    It's been factored in. 

    Strange headline. Not a great quarter and next quarter shows the expected decline guessed at by the supply chain insiders. 

    My however I think that the new 4" models will sell very well. 
    edited January 2016 canukstorm
  • Reply 15 of 135
    sog35 said:
    shahhet2 said:
    Not too excited for next quarter.
    For year 2015, 3 month ending in March Apple had posted quarterly revenue of $58 billion.
    For year 2016, 3 months ending in March Apple is forecasting quarterly revenue of $50-$53 billion. (Mid point $51.5 which is down for $58 billion)
    That points to about 10% quarter over quarter revenue decline despite adding lot many service revenue streams.
    Can't wait for some good Car or some other big announcement to get stock back up.
    I guess for now, it's in hold period until something big comes along.
    This was expected until something big comes along. Service revenue are not making much dent and now the iPhone revenue is in declining mode from next quarter.

    You need to take into account currency headwinds.   That is probably $3-$4 billion.

    Also the iPhone6 was a massive upgrade cycle. The 6s not so much. I expect the 7 to be a massive upgrade cycle also.
    iPhone6 was massive upgrade cycle due to first time big screen release. That luxury is gone now, so don't fool yourself.
    Even with current headwinds, I can see over 10% decline in pure iPhone revenue, as you have to add new Service revenue streams. 
    edited January 2016 canukstorm
  • Reply 16 of 135
    iPad ASP only up $6. So did they not sell a lot of iPad Pros?
  • Reply 17 of 135
    quadra 610quadra 610 Posts: 6,757member
    A 25% YOY decline in iPads is not a good sign. 

    iPads ain't phones. The market is by now saturated with them, and older models are still going strong. 

    And the largest iPhone naturally eats into iPad sales. Pretty sure Apple is just fine with that. 

    But even in 2016, there are still many who don't understand Apple. Which is fine, because this crowd is most amusing come quarterly report time. 
  • Reply 18 of 135
    Year-over-year change:
    Sales: +1.7%
    iPhone units: +0.4%
    iPad units: -24.7% (Considering new iPad Pro release)

    Sales in China climb 14% year-over-year to $18.37 billion,
    Japan down 12%,
    Americas down 4%

    edited January 2016
  • Reply 19 of 135
    Apple still generates nearly all of the smartphone profits. 

    They are still the most profitable PC maker but those sales were off also. 

    If Apple is experiencing difficulty with sales and profits, the rest of the industry is in far greater distress. 
    caliicoco3chia
  • Reply 20 of 135
    Rayz2016Rayz2016 Posts: 6,957member
    sog35 said:
    shahhet2 said:
    Not too excited for next quarter.
    For year 2015, 3 month ending in March Apple had posted quarterly revenue of $58 billion.
    For year 2016, 3 months ending in March Apple is forecasting quarterly revenue of $50-$53 billion. (Mid point $51.5 which is down for $58 billion)
    That points to about 10% quarter over quarter revenue decline despite adding lot many service revenue streams.
    Can't wait for some good Car or some other big announcement to get stock back up.
    I guess for now, it's in hold period until something big comes along.
    This was expected until something big comes along. Service revenue are not making much dent and now the iPhone revenue is in declining mode from next quarter.

    You need to take into account currency headwinds.   That is probably $3-$4 billion.

    Also the iPhone6 was a massive upgrade cycle. The 6s not so much. I expect the 7 to be a massive upgrade cycle also.

    You'd better brace yourself for a bit of a stock thumping over the coming weeks. 
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