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'earnings' Articles

Apple Forecasts Another Revenue Decline Next Quarter

Apple today reported its first year-over-year decline in quarterly revenue since 2003, and its guidance for the third quarter of the 2016 fiscal year suggests that the downward trend is likely to continue. Apple expects third quarter revenue of between $41 billion and $43 billion, which would be up to 18 percent lower than the $49.6 billion in revenue it posted in the year-ago quarter. The company also expects a gross margin between 37.5 percent and 38 percent, operating expenses between $6 billion and $6.1 billion, other income/expenses of $300 million, and a tax rate of 25.5 percent. Apple's first revenue decline in thirteen years is largely attributable to the first ever year-over-year decline in iPhone sales, which dropped to 51.2 million from nearly 61.2 million in the year-ago quarter. iPad and Mac sales also declined to 10.25 million and 4.03 million respectively in the March quarter, compared to 12.62 million and 4.56 million respectively a year ago. Meanwhile, Apple experienced growth in both its Services and Other Products categories, the latter of which totaled $2.19 billion and includes sales of iPods, Apple TVs, Beats Electronics, and Apple-branded and third-party accessories. Quarterly revenue from the iTunes Store, App Store, Mac App Store, iBooks Store, AppleCare, Apple Pay, licensing, and other services amounted to nearly $6 billion, up from $5 billion in the year-ago quarter. The Americas remain Apple's largest market with $19.1 billion in revenue, followed by China where revenue fell rather sharply to $12.5 billion compared to $16.8

Apple Reports First Year-Over-Year Revenue Decline Since 2003: $10.5B Profit on $50.6B in Revenue

Apple today announced financial results for the second fiscal quarter (first calendar quarter) of 2016. For the quarter, Apple posted revenue of $50.6 billion and net quarterly profit of $10.5 billion, or $1.90 per diluted share, compared to revenue of $58 billion and net quarterly profit of $13.6 billion, or $2.33 per diluted share, in the year-ago quarter. As expected, the year-over-year decline in quarterly revenue was the first for Apple since 2003. Gross margin for the quarter was 39.4 percent compared to 40.8 percent in the year-ago quarter, with international sales accounting for 67 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.57 per share, up from $0.52. The dividend is payable on May 12 to shareholders of record as of May 9. The company currently holds $233 billion in cash and marketable securities, partially offset by $77 billion in long-term debt. In addition to the increase in the dividend payment, Apple says it will once again expand its share repurchase authorization by an additional $35 billion to $175 billion and the company says it expects to spend over $250 billion in cash under its capital return program by the end of March 2018. Apple sold 51.1 million iPhones during the quarter, down from 61.2 million a year earlier, while Mac sales were 4.03 million units, down from from 4.56 million units in the year-ago quarter. iPad sales were also down once again, falling to 10.25 million from 12.6 million.“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Tim Cook, Apple’s

Apple Forecasted to Report First Quarterly Revenue Decline Since 2003

Apple is set to announce its financial earnings results for the second quarter of the 2016 fiscal year at 1:30 p.m. Pacific, and the consensus among analysts is that the iPhone maker will report its first quarterly revenue decline in over a decade. Wall Street analysts project that Apple will report revenue of around $52 billion, or nearly a 10-percent decline compared to the year-ago quarter. Today's earnings results are based on the three-month period between December 27, 2015 and March 26, 2016. Apple itself projected quarterly revenue of between $50 and $53 billion, compared to $58 billion in the year-ago quarter, possibly signaling the end of over 50 consecutive quarters of year-over-year revenue growth dating back to 2003. Tim Cook, CEO, already cautioned investors that iPhone sales will likely decline in the second fiscal quarter. That decline will be realized if Apple sells fewer than 61.2 million iPhones this quarter, which appears likely given most analysts expect sales to hover around the 50 to 51 million mark. Apple's quarterly revenue between 2005 and 2016 (Source: Statista) iPhone SE sales will not be included in that total, as the lower-priced smartphone launched on March 31, five days after the quarter ended. MacRumors will be providing live blog coverage of Apple's earnings conference call with CEO Tim Cook and CFO Luca Maestri at 2:00 p.m. Pacific. AAPL is trading slightly lower on the NASDAQ at around the $104 mark in pre-market trading ahead of today's announcement.

Apple Expects First Ever Decline of iPhone Sales Next Quarter

Apple CEO Tim Cook confirmed during the company's financial earnings conference call today that iPhone sales will likely decline in the March quarter, marking the first year-over-year decline since the smartphone was released in June 2007. The decline will be realized if Apple sells fewer than 61.2 million iPhones this quarter. Apple forecasts that its total revenue in Q2 2016 will be between $50 and $53 billion, compared to $58 billion in the year-ago quarter, signaling the company's first year-over-year drop in revenue in thirteen years. Apple has posted over 50 quarters of year-over-year revenue growth since 2003. Apple is currently facing significant foreign exchange headwinds. A strong U.S. dollar makes it more difficult for Apple, which reports its earnings in U.S. dollars, to perform when some 66% of their business is overseas. Every $100 of Apple’s non-U.S. dollar revenue earned in Q4 2014 translates into only $85 U.S. dollars today. Financial analysts had already predicted the iPhone would face its first quarterly sales decline in Q2 2016 compared to the year-ago quarter, with some reports claiming the iPhone 6s and iPhone 6s Plus may not outsell last year's iPhone 6 and iPhone 6 Plus, its first devices with larger than 4-inch screens. iPhone growth in the just-announced first fiscal quarter of 2016 was the slowest since the smartphone's introduction in 2007. Apple sold a record 74.8 million iPhones during the quarter, which includes the busy holiday shopping season, up only 300,000 units from 74.5 million a year earlier. Nevertheless, Cook said

Apple Forecasted to Report Record Holiday Quarter Amid Concerns of Slowing iPhone Sales

Apple will announce its first quarter earnings tomorrow for the 2016 fiscal year, a three-month period that ended December 31, 2015. Financial analysts predict Apple's quarterly revenue will range between $74.6 billion and $82.4 billion, but some market watchers are unsure if Apple will top the record 74.5 million iPhones it sold in the year-ago quarter, due to perceived lower iPhone 6s sales. iPhone 6s sales concerns might be more evident in Q2 2016, however, as Apple's newest products and services, including the Apple Watch, Apple Music and the new Apple TV, coupled with the busy holiday shopping season, fuel projections that Apple will again report the most profitable holiday quarter in not only the iPhone maker's nearly 40-year history, but of any company ever. Apple's guidance is between $75.5 billion and $77.5 billion in quarterly revenue, while the consensus among professional analysts is around $76.5 billion. Fortune has compiled a list of predictions from both amateur and professional analysts, along with Apple's guidance in orange. Apple has never experienced a year-over-year decline in iPhone sales, so the next few quarterly earnings results will be interesting to follow. MacRumors will be providing live coverage of Apple's Q1 2016 earnings conference call with CEO Tim Cook and CFO Luca Maestri on Tuesday at around 2:00 p.m. Pacific (5:00 p.m. Eastern). The earnings report will be released around 1:30 p.m. Pacific (4:30 p.m.

Apple's Record 4Q 2015 Results: $11.1 Billion Profit on $51.5 Billion Revenue

Apple today announced financial results for the third calendar quarter and fourth fiscal quarter of 2015, setting a number of company records. For the quarter, Apple posted revenue of $51.5 billion and net quarterly profit of $11.1 billion, or $1.96 per diluted share, compared to revenue of $42.1 billion and net quarterly profit of $8.5 billion, or $1.42 per diluted share in the year-ago quarter. Gross margin for the quarter was 39.9 percent compared to 38 percent in the year-ago quarter, with international sales accounting for 62 percent of revenue. Apple also declared an upcoming dividend payment of $0.52 per share, payable on November 12 to shareholders of record as of November 9. The company currently holds $205.6 billion in cash and marketable securities. For the quarter, Apple sold 48 million iPhones, up from 39.2 million in the year-ago quarter. iPad sales were down to 9.9 million from 12.3 million in the fourth quarter of 2014, and Mac sales rose to 5.7 million from 5.5 million. For the full fiscal year, Apple generated $233.7 billion in sales, a new record for the firm, with $53.4 billion in net income.“Fiscal 2015 was Apple’s most successful year ever, with revenue growing 28% to nearly $234 billion. This continued success is the result of our commitment to making the best, most innovative products on earth, and it’s a testament to the tremendous execution by our teams,” said Tim Cook, Apple’s CEO. “We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded

Apple Reports Q3 2015 Earnings of $10.7B on $49.6B Revenue: 47.5M iPhones, 10.9M iPads, 4.8M Macs

Apple today announced financial results for the third fiscal quarter and second calendar quarter of 2015. For the quarter, Apple posted revenue of $49.6 billion and net quarterly profit of $10.7 billion, or $1.85 per diluted share, compared to revenue of $37.4 billion and net quarterly profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin for the quarter was 39.7 percent compared to 39.4 percent in the year-ago quarter, with international sales accounting for 64 percent of revenue. Apple also declared an upcoming dividend payment of $0.52 per share, payable on August 13 to shareholders of record as of August 10. The company currently holds $202.8 billion in cash and marketable securities. Apple sold 47.5 million iPhones during the quarter, up from 35.2 million a year earlier, while Mac sales registered 4.8 million units, up from 4.4 million units in the year-ago quarter. iPad sales continued to decline, however, falling to 10.9 million from 13.3 million.“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”Apple's guidance for the fourth quarter of fiscal 2015 includes expected revenue of $49-51 billion and gross margin between 38.5 and 39.5 percent. Apple will provide live streaming of its fiscal Q3

Apple Predicted to Beat Expectations in Third Quarter on Strong iPhone Sales and Growth in China

Less than one week before Apple's third quarter fiscal results are released on July 21 at 2:00 PM Pacific, multiple research firms and analysts have released earnings previews for the three-month period ending June 30. The consensus is that Apple will report another quarterly earnings beat based on stronger than expected iPhone sales and continued year-over-year growth in China. Apple provided third quarter guidance of revenue between $46 billion and $48 billion, gross margin between 38.5% and 39.5%, operating expenses between $5.65 billion and $5.75 billion and other expenses of $350 million, while the consensus among analysts was an EPS of $1.79. Apple is expected to beat both that guidance, which is purposefully conservative, and street expectations. Wall Street and Silicon Valley analyst Neil Cybart published his 3Q15 earnings preview on Above Avalon, predicting Apple earned $50.9 billion revenue, with a gross margin of 40.9% and $1.97 earnings per share (EPS), based on sales of 49.3 million iPhones, 10.1 million iPads, 4.9 million Macs, 4.3 million Apple Watches and $9.3 billion from other products and services. Creative Strategies principal analyst Ben Bajarin estimates that Apple Watch worldwide sales were 4.7 million during the June quarter, topping the roughly 1.1 million iPhones and 3.3 million iPads sold in their respective launch quarters. Bajarin's estimate is based on supply chain output tracked by his market research firm, and is 400,000 units higher than Above Avalon's estimate. Apple has not publicly disclosed any official Apple Watch

Apple Reports Record March Quarter Results of $13.6B Profit on $58B Revenue, Boosts Dividend and Buybacks

Apple today announced financial results for the second fiscal quarter and first calendar quarter of 2015. For the quarter, Apple posted revenue of $58 billion and net quarterly profit of $13.6 billion, or $2.33 per diluted share, compared to revenue of $45.6 billion and net quarterly profit of $10.2 billion, or $1.66 per diluted share, in the year-ago quarter. Gross margin for the quarter was 40.8 percent compared to 39.3 percent in the year-ago quarter, with international sales accounting for 69 percent of revenue. Apple also declared an increased dividend payment of $0.52 per share, payable on May 14 to shareholders of record as of May 11. The company currently holds $193.5 billion in cash and marketable securities. In addition to the increase in the dividend payment, Apple said it will once again expand its share repurchase authorization to $140 billion from $90 billion and the company says it expects to spend over $200 billion in cash under its capital return program by the end of March 2017. Since the start of its capital return program in August 2012, Apple has returned over $112 billion to shareholders, including $80 billion in share buybacks. Apple sold 61.2 million iPhones during the quarter, up from 43.7 million a year earlier and a new March quarter record, while Mac sales were also strong with 4.56 million units sold, up from 4.1 million units in the year-ago quarter. iPad sales were down, however, falling to 12.6 million from 16.35 million.“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March

Apple Forecasted to Report Double-Digit Growth in Second Quarter as Sales Remain Strong

Apple will report its financial results later this hour for the second quarter of the 2015 fiscal year, a three-month period spanning January through March that directly followed the holiday shopping season. Apple has offered guidance of between $52 billion and $55 billion in quarterly revenue, while the average of all analysts combined forecasts the company's revenue during the quarter marginally higher at $56.84 billion. Philip Elmer-DeWitt at Fortune has compiled a pair of charts that aggregate all predictions by independent and professional analysts for Apple's revenue, EPS, gross margin and number of iPhones, iPads and Macs sold during Q2 2015, and it's believed that Apple will report double-digit growth year-over-year as sales remain strong and the company's momentum continues in 2015. Amateur analysts are bullish, predicting average quarterly revenue of $58 billion and sales of 60.1 million iPhones, 13.6 million iPads and 4.7 million Macs, while professional analysts remain more conservative with an average estimate of $55.69 billion quarterly revenue and sales of 55.7 million iPhones, 14.2 million iPads and 4.6 million Macs. Apple is also forecasted to have a gross margin of 39.4% based on the average of all analysts. MacRumors will be providing live coverage of Apple's financial results as they are reported around 1:30 PM Pacific (4:30 PM Eastern), including the subsequent earnings conference call with CEO Tim Cook and CFO Luca Maestri at 2 PM Pacific (5 PM Eastern). At that time, we'll have a clearer picture of just how well Apple managed to perform

Tim Cook: Apple Watch on Schedule to Ship in April

During today's earnings call covering the first fiscal quarter of 2015, Apple CEO Tim Cook shared some new details on the prospective launch date of the Apple Watch. According to Cook, Apple Watch development is currently on schedule, and the company is planning to ship the device in April. Development for Apple Watch is right on schedule, and we expect to begin shipping in April.When the Apple Watch was announced, Apple gave a vague "early 2015" launch date for the device, making it unclear when it would actually ship. Several rumors recently pointed towards a March launch date for the device, but it appears it will actually begin shipping out to consumers a month later, in April. Cook confirmed that the Apple Watch's April shipping date was within the expected range of early 2015, which Apple considers to be the first four months of the year. Cook also said there are some amazing apps in the works for the device, and he mentioned that he couldn't live without the Apple Watch.My expectations are very high on it. I'm using it every day and love it and can't live without it. Now that we know when the Apple Watch is expected to launch, the only unknowns about the device are battery life and its cost. Rumors have suggested that battery life will be somewhat disappointing, lasting approximately 19 hours during "mixed use." Cost is also up in the air, aside from a known starting price of $349 for the lower-end device. Pricing on the middle tier version is unclear, as is pricing for the high-end gold Apple Watch, which rumors suggest could sell for thousands of

Tim Cook: Apple Has Sold More Than 1 Billion iOS Devices

Apple CEO Tim Cook confirmed on Tuesday during the company's quarterly earnings call that it has sold more than 1 billion iOS devices to date since launching the original iPhone over seven years ago. According to Cook, the impressive milestone, which accounts for the iPhone, iPad and iPod touch, was reached in November and was helped along by a record-breaking 74.5 million iPhones sold in Q1 2015. The milestone device was kept by Apple and is at the company's Cupertino headquarters. Cook emphasized that iPhone 6 and iPhone 6 Plus demand was stronger than any other iPhone it has ever released, selling at a pace of roughly 34,000 devices per hour. The success of the iPhone 6 and iPhone 6 Plus was aided by the widest international rollout of an iOS device to date, with the smartphone launching in more places than ever before and in a total of 130 countries. 1 Billion iOS devices shipped!!— Philip Schiller (@pschiller) January 27, 2015

iPhone 6 and 6 Plus Brought More Android Switchers, New Customers Than Prior Models

During today's earnings call covering the first fiscal quarter of 2015, Apple CEO Tim Cook was asked about the sales split between the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus. He declined to provide specific numbers on the split, but he did confirm that the iPhone 6 was the most popular device. "Obviously to sell 74.5 million devices, they were all popular," Cook said. "Both did incredibly well. We're really proud of them, along with the iPhone 5s and 5c." According to Cook, there was some clear geographical preference for the iPhone 6 vs the iPhone 6 Plus. Some locations skewed higher to iPhone 6 Plus preference, while others preferred the iPhone 6. He didn't specify which regions preferred which devices, but data has suggested Asian countries favored the iPhone 6 Plus. During the call, Cook also mentioned that the iPhone 6 and 6 Plus brought the highest Android switcher rate over the course of the last three years and that there's still a lot of opportunity to see growth as only a "small fraction" of existing iPhone users (in the low teens) have upgraded to a new device. The iPhone 6 and 6 Plus have brought the highest number of customers new to iPhone than in any prior iPhone launch. "We saw more new customers to iPhone than we've ever seen before," said Cook. Cook said the company is getting "great feedback" about the quality of the products that they're shipping, and that in emerging markets, iPhone growth was "absolutely stunning." The company is very bullish on the iPhone going forward, expecting to see a lot of new adopters in Q2 2015 as

Apple Pay Responsible for Two of Every Three Contactless Payments on Visa, MasterCard, and American Express

Since its introduction in October, Apple Pay has accounted for two of every three dollars spent through contactless payments on Visa, Mastercard, and American Express, according to Apple CEO Tim Cook who shared the information during the company's earnings call for the first fiscal quarter of 2015. "Apple Pay is off to a very strong start," said Cook, adding that he expects 2015 to be "the year of Apple Pay." About 750 banks and credit unions have signed on to accept Apple Pay, and according to numbers shared by Cook, Apple Pay was responsible for 80 percent of mobile payments at Panera Bread, and at Whole Foods, mobile payments increased by 400 percent. Earlier information has also pointed to Apple Pay's success. Apple Pay had more than 1 million card activations during the first 72 hours Apple Pay was available, and in November, Apple Pay captured a total of 1 percent of all digital payment dollars. Thus far, Apple Pay has proven to be most popular at Whole Foods, with the speciality grocery store responsible for 20 percent of all Apple Pay transactions and 28 percent of all Apple Pay spending. Walgreens and McDonald's were also popular with Apple Pay users. Apple Pay is still in its infancy, limited to the United States. In the coming months, Apple plans to expand to several other locations across Europe, Canada, and Asia. In the United States, Apple Pay now supports cards representing 90 percent of U.S. credit card purchase volume.

Apple Reports Record Earnings and iPhone Sales: $18B Profit on $74.6B in Revenue for Q1 2015

Apple today announced financial results for the first fiscal quarter of 2015, which corresponds to the fourth calendar quarter of 2014. For the quarter, Apple posted revenue of $74.6 billion and net quarterly profit of $18 billion, or $3.06 per diluted share, compared to revenue of $57.6 billion and net quarterly profit of $13.1 billion, or $1.98 per diluted share, in the year-ago quarter. Gross margin for the quarter was 39.9 percent compared to 37.9 percent in the year-ago quarter, with international sales accounting for 65 percent of revenue. Apple also declared an upcoming dividend payment of $0.47 per share, payable on February 12 to shareholders of record as of February 9. The company currently holds $178 billion in cash and marketable securities. Apple sold a record 74.5 million iPhones during the quarter, up from 51 million a year earlier, while Mac sales were also strong with 5.5 million units sold, up from 4.8 million units in the year-ago quarter. iPad sales were down, however, falling to 21.4 million from 26 million.“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO. “Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”Apple's guidance for the second quarter of fiscal 2015 includes expected revenue of $52-55 billion and gross margin between 38.5 and 39.5 percent. Apple will provide live streaming of its fiscal Q1 2015 financial results conference call at 2:00 PM

Apple Predicted to Report Record-Breaking First Quarter on Strength of iPhone 6 and 6 Plus

Apple is set to report its financial results this afternoon for Q1 2015, a three-month period spanning October through December that directly followed the launch of the highly-anticipated iPhone 6 and iPhone 6 Plus. Despite offering guidance of between $63.5 to $66.5 billion in total sales, many analysts are predicting that Apple outpaced those numbers in what could amount to a record-breaking quarter. Fortune has averaged the estimates of 35 analysts, including 20 professionals and 15 amateurs, and determined that expectations are for Apple to report earnings of $2.68 per share, a nearly 30% year-over-year increase, and revenue of $68.7 billion, about a 20% increase from the year-ago quarter and $2.2 billion higher than Apple's high-end forecast. The first quarter has historically been the most lucrative for Apple, as the company typically launches new or refreshed products in the fall ahead of the busy holiday shopping season. Apple has posted record-breaking first quarter earnings results for over a decade, a span in which it announced several iconic products such as the iPod, iPhone, iPad, MacBook Pro and MacBook Air. Analysts believe that Q1 2015 will be a home run for Apple on the strength of the iPhone 6 and iPhone 6 Plus. The larger screen sizes of the new smartphones were a major draw for many existing iPhone users looking to upgrade, and enough of a reason for some Android users to make the switch. Apple also launched a few other noteworthy products in the quarter, including the iMac with Retina 5K Display and new iPads. MacRumors will be