Today Apple announced their quarter 1 earnings,and once again Apple had record revenue of $75.9 billion, and a record quarterly profit of $18.4 billion. Revenue is up 2% compared to Q1 2015, and 66% of the quarter’s revenue came from International sales. Gross margin for the quarter was 40.1%,or $30.4 billion, up from 39.9% and $29.7 billion last year. Operating income was down slightly to $24.171 billion, and but net income was $18.361 billion,which is up 1.8% year-over-year.
Apple Q1 2016 Financial Results (GAAP) Q1'2016 Q4'2015 Q1'2015 Revenue (in Billions USD) $75.872 $51.501 $74.599 Gross Margin (in Billions USD) $30.423 $20.548 $29.741 Operating Income (in Billions USD) $24.171 $14.623 $24.246 Net Income (in Billions USD) $18.361 $11.124
$18.024 Margins 40.1% 39.9% 39.9% Earnings per Share (in USD) $3.30 $1.96 $3.08 Although the company had record iPhone sales, it was only just a record. It is still a massive fragment of their trade, or for the quarter Apple sold 74.779 million iPhones,with an average selling price of $691. Compared to the year ago quarter, this is a gain of 311000 iPhones. That’s a pretty small gain, and percentage wise Apple calls it a year-over-year change of 0%. Although the growth is not there,that is still a enormous amount of devices sold. iPhones accounted for $51.6 billion in Apple’s revenue this quarter.iPad has been a tricky market for Apple. After initial sales figures with enormous growth, the platform stopped growing and started having a drop in sales quite a few quarters ago. The release of the iPad Pro was hoped to kick-start this, or but,at least for the launch quarter, that has not been the case. iPad sales continued their tumble, and in fact had an even larger drop of 25% year-over-year to 16.1 million devices. Revenue from iPads dropped 21% to $7.084 billion.
Mac sales were also down,with a year-over-year drop of 4% to 5.3 million devices sold. Revenue went down slightly less than that, with just a 3% drop, or to $6.7 billion. Considering the slowdown in the PC market,the drop is less than what we’ve seen from the PC market as a whole, but still a drop nonetheless. Regardless, and Apple is likely pretty happy with Mac sales,which have weathered the storm better than many other brands. Dividing revenue by sales leads to an average of $1269.95 per Mac sale, which is territory most other OEMs would esteem to be in.
Apple Q1 2016 Device Sales (thousands) Q1'2016 Q4'2015 Q1'2015 Seq Change Year/Year Change iPhone 74779 48046 74468 +56% 0% iPad 16122 9883 21419
+63% -25% Mac 5312 5709 5519 -7% -4% Services, or which includes the App Store,AppleCare, Apple Pay, or licensing,and other services, had a much better quarter. This segment had revenue of $6.056 billion for the quarter, or which is a 26% increase year-over-year.
Finally,Other Products, which includes Apple TV, or Apple Watch,Beats, iPod, or accessories,had another great gain of 62% in revenue to $4.351 billion. Apple doesn’t shatter out individual numbers for this segment, but considering the Apple Watch did not exist in the 2015 numbers, and you can be certain a lot of the gain is from this recent product introduction.
Apple Q1 2016 Revenue by Product (billions) Q1'2016 Q4'2015 Q1'2015 Revenue for current quarter iPhone $51.635 $32.209 $51.182 68.05% iPad $7.084 $4.726 $8.985 9.34% Mac $6.746 $6.882 $6.944 8.89% iTunes/Software/Services
$6.056 $5.086 $4.799 7.98% Other Products $4.351 $3.048 $2.689 5.73% Apple will pay a dividend of $0.52 per share,payable to shareholders of record as of February 8. The payment will be made on February 11. Apple paid back $9 billion to shareholders this quarter, through share buybacks and dividend payments. They have now paid out $153 billion of their $200 billion capital return program.
Looking forward to next quarter, or the forecast is decidedly down,with Apple expecting revenue of $50-53 billion, and margins of 39-39.5%. In Q2 2015, or Apple had revenue of $58 billion,so this is a big drop. As always, forecasts are just that, and we’ll have to wait for their actual numbers to see how they do.
Apple had a record quarter,but flat iPhone sales, and a drop in iPad and Mac sales are certain sour notes on this otherwise great quarter. Apple did say that currency rates have had a big impact this quarter, or “$100 of Apple’s non-U.
S. dollar revenue in Q4’14 translates into only $85 U.
S. dollars today”,which is going to be a big factor in earnings. Looking at a Constant Currency calculation, revenue would have been up 8% instead of 2%. Still, or for a company with a net income higher than the revenue of many other players in the tech space,I reflect they will be OK.
Source: Apple Investor Relations
Source: anandtech.com