Posted on 10/25/2016 2:17:21 PM PDT by Swordmaker
Apple today announced financial results for its fiscal 2016 fourth quarter ended September 24, 2016.
The company posted quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share. These results compare to revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.
“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” said Tim Cook, Apple’s CEO, in a statement. “We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record.”
“We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter,” said Luca Maestri, Apple’s CFO, in a statement. “We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program.”
Apple is providing the following guidance for its fiscal 2017 first quarter:
• revenue between $76 billion and $78 billion
• gross margin between 38 percent and 38.5 percent
• operating expenses between $6.9 billion and $7 billion
• other income/(expense) of $400 million
• tax rate of 26 percent
Apple’s board of directors has declared a cash dividend of $0.57 per share of the Company’s common stock. The dividend is payable on November 10, 2016 to shareholders of record as of the close of business on November 7, 2016.
Prior to Apple’s earnings release, analysts had expected:
• September quarter revenue: $46.9 billion
• September per-share earnings: $1.65
• September iPhone sales: 44.8 million
• September Mac sales: 5 million
• September iPad sales: 8.5-9 million.
• December quarter revenue guidance: $74.88 billion
MacDailyNews Take: Looks like iPhone 7/Plus supply issues may have been deep which bodes well for Q117 (current holiday quarter) via delayed sales.
Why’s it down 3 percent after hours?
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Profit taking?
Because its growth is slowing. Its products are old. And there does not seem to be anything new. Their biggest competitor is blowing up and yet Apples sales are not that great.
Not much of a rally to speak of the past month or so to take profits from.
Must have missed on next quarters expected.
BLOWING UP FOR REAL!!!!
I thought apple was beelining to 130 on that news.
Never happened.
Still think it’s a decent long term investment, BUT it’s gone up 3500 percent in 8 years!!
I had it at 20 before the split. I think about shooting myself sometimes. :(
Who knows. The Wall Street response is always irrational. It could be that some single thing in the report is not what the anal-cysts wanted it to be. The guidance Apple is giving for the next quarter is ABOVE what the Street was expecting by a considerable amount, but it may not be up as much as some anal-cyst wanted it to be above the expectation. Irrational. A couple of years ago, Apple turned in the best quarter of any company in history and AAPL stock went down drastically!
One thing is that some outlying anal-cysts were saying that Apple needed to sell 46 million iPhones or it would be disaster. . . ignoring that the new iPhone 7 models would only be on the market starting on Friday, September 16, 2016, just 8 days before the end of the fiscal quarter/year on Saturday, September 24, 2016, and the depression of sales that ALWAYS precede the release of an anticipated new product. Comparing last year's iPhone sales, Apple stated they built-up channel inventory by 3.5 million units which were in the reported 48 million units in that quarter. . . so there were actually MORE units sold this year than last year because they are selling as many iPhones as they can build this year, trying to meet demand for the iPhone 7, especially the 7 Plus (per Tim Cook in the Financial Conference Call quoted as I type this). That unmet over hyped expectation may have some effect on the market.
Do you think a company that make $9B a quarter might be able to make their products in the USA? I mean gee,if they used US labor their net might be $8.5B instead of $9B. Crisis.
The new iPhone 7 and 7 plus was release two weeks before the end of the quarter and new Macs will be released in two days, on Thursday. The iPhone 7 sales have been phenomenal. . . but don't show up in these figures. Guidance for the next quarter will show that, and it's larger than what the Street expected.
The iPhone 7 and iPhone 7 plus are still completely sold out, with a three week to one month delivery time on the 7 plus. Apple is building those as fast as they can.
Tim Cook just stated they underestimated the product mix between the iPhone 7 and the iPhone 7 Plus, with the Plus demand being far larger than they expected from their experience from the iPhone 6 Plus and 6s Plus models. People are really demanding far more of the iPhone 7 Plus over the iPhone 7, than they had before over the baser model in previous years.
It’s Joe Maddon’s fault....
The Cubs coach spent 90 minutes trying to get his iPad Pro to work. Unsuccessfully.
...Maddon couldn’t use his iPad to enter lineups before the game between the Cubs and the Los Angeles Dodgers, causing him to spend 90 minutes with technical support before the game to address the issue. Apparently, it was a futile effort because he ended up using his phone to do the job.
http://fortune.com/2016/10/20/joe-maddon-ipad-mlb/
No. The labor cost is the least of the problem. . . look instead at the overwhelming cost of regulation and availability of other resources. It isn't here. It's there.
That being said, as you've been told, multiple times before, Apple DOES make some of their products in the USA. They manufacture their MacPro and they make the iMacs here. I've told you this before but you keep ignoring it. . . because it does not fit your talking point. Apple has moved what manufacturing to the USA that they could. Many components of the iPhone and iPad are actually manufactured in the USA.
Cubs are always causing trouble somewhere :)
I haven’t followed baseball in 30 years.
Wasn’t there a field that still didn’t have evening lights back then?
Post exact numbers on the dollar value of the product made in the USA vs The World. Or pipe down. Apple boy please do some research for once and stop expressing feelings.
Love em or hate em, at least Apple sells physical products, unlike Facebook and others that are driven by nothing but advertising.
The article mentioned that MLB is a superstitious lot. . . but so are the players on Wall Street. So it could be true. It is Joe Maddon's fault. LOL!
Agree. They're selling millions of units, something that other companies envy. But Wall Street wants more results. Crazy. My wife and I contributed, we just bought a pair of iPhones today. Not the latest ones, we got older brand new models cheap because we don't need the latest features. Dumping our android phones.
MacDailyNews presents live notes from Apple’s Q416 conference callMacDailyNews presents live notes from Apple’s Q416 Conference Call with analysts starting at 5pm EDT/2pm PDT today.
Apple will provide live audio streaming of its Q416 Results Conference Call using Apple’s industry-leading QuickTime multimedia software.
The live webcast will begin at 2pm PDT/ 5pm EDT today here.
Apple today announced financial results for its fiscal 2016 fourth quarter ended September 24, 2016. Apple posted quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share. Analysts’ consensus estimates were looking for revenue of $46.9 billion and EPS of $1.65 (FactSet).
For their fiscal 2016 fourth quarter, Apple guided for revenue between $76 billion and $78 billion. Analysts had expected revenue guidance of $74.88 billion.
Live notes from Apple’s Q415 Conference Call :
- Awaiting start of conference call
- AAPL: 115.73, -2.52 (-2.13%), After hours: 4:47 PM EDT
- AAPL: 115.90, -2.35 (-1.99%), After hours: 4:55PM EDT
- Cook: We are excited to hold a special event this week on Thursday on the Apple campus
- Cook: We saw more customers switch from Android to iPhone than ever before
- Cook: Record quarter for services, up 24% YOY
- JD Power: Apple Music has highest customer satisfaction in industry
- Apple Pay transactions up nearly 500% YOY in September quarter
- Apple Pay transaction during September quarter exceeded all of 2015
- Cook: In fiscal 2017, Apple services will be the size of a Fortune 100 company
- Cook: We are off to a great start with Apple Watch Series 2, the world’s most popular smartwatch
- Aetna will provide Apple Watch to nearly 50,000 of their employees to encourage healthier living
- Apple has been using AI for years and is investing heavily. Machine learning drives many features throughout Apple’s ecosystem
- Machine learning makes the fitness features of Apple Watch more accurate and makes Siri even smarter
- Siri has just arrived on the Mac and, via APIs, Apple is encouraged by developers’ efforts
- iPhone sales in India up over 50% and “we believe we’ve just begin to scratch the surface” of the Indian market
- Apple and Deloitte will help companies quickly and easily transform the way they work by maximizing the power, ease-of-use and security the iOS platform brings to the workplace through iPhone and iPad. As part of the joint effort, Deloitte is creating a first-of-its-kind Apple practice with over 5,000 strategic advisors who are solely focused on helping businesses change the way they work across their entire enterprise, from customer-facing functions such as retail, field services and recruiting, to R&D, inventory management and back-office systems.
- Luca Maestri goes over earnings figures…
- Gross margin: 38%
- iPhone unit sales: 45.513 million units, $28.160 billion in revenue
- iPad: 9.267 million units, $4.255 billion
- Mac: 4.886 million units, $5.739 billion
- Services: $6.325 billion (quarterly record)
- Exited quarter with iPhone channel inventory well below target range (supply greatly constrained)
- Worldwide demand significantly outpaced supply, particularly iPhone 7 Plus
- Average ASP of $619 for iPhone in quarter
- App Store growth rate 45%
- Apple saw strong double-digit growth in several services categories
- Mac install base reached new all-time high – exciting news to share very soon (Thursday)
- iPad channel inventory is below 5-7 week target range
- iPad gained share in U.S. market during Sept. quarter: 82% share of $200+ tablets
- iPad Pro is the top choice for planned purchases
- IBM: Now more than 90,000 Macs at IBM, 81,000 iPhones, 48,000 iPads
- Apple returned $9.3 billion to investors through dividends and share repurchases during the quarter
- Total buyback activity reduced total AAPL share count by 1.5%
- Apple is providing the following guidance for its fiscal 2017 first quarter:
– revenue between $76 billion and $78 billion (return to growth over all-time record)
– gross margin between 38 percent and 38.5 percent
– operating expenses between $6.9 billion and $7 billion
– other income/(expense) of $400 million
– tax rate of 26 percent
- Apple tax rate for fiscal 2016: 25.6%
- Apple’s board of directors has declared a cash dividend of $0.57 per share of the Company’s common stock. The dividend is payable on November 10, 2016 to shareholders of record as of the close of business on November 7, 2016
— analysts’ que
- Cook: Cannot comment on rumors (Apple Car). We’re always looking at new things and, with the car space in general, it’s clear that technology will be important and Apple sees it as “interesting.”
stions begin —- Cook: iPhone 7/Plus – carriers that had upgrade plans say demand is very robust. Demand is outstripping supply on worldwide basis, esp. for iPhone 7 Plus
- Cook: Cannot comment on rumors (Apple Car). We’re always looking at new things and, with the car space in general, it’s clear that technology will be important and Apple sees it as “interesting.”
- Cook: On iPhone 7 we will come into supply/demand balance this quarter; working to bring iPhone 7 Plus into balance, but demand is very strong
- Maestri: Last Dec. quarter (Q116) set Apple’s all-time record revenue; Apple is guiding for a new quarterly record in Q117
- Maestri: Apple is very supply constrained on iPhone 7 Plus, certainly more supply constraint vs. last year’s iPhone 6s Plus
- Cook on Apple’s R&D more than doubling YOY: There is clearly some amount of R&D happening on products that have not yet reached market
- Cook: We feel really great about what’s in the pipeline and we’ve also spent to make the ecosystem even better
- Cook: Down 17% in China in fiscal 2016 vs. fiscal 2015
- Cook: Fiscal 2016 hurt by about 3% due to currency devaluation
- Cook: Apple saw a surge of iPhone 6/Plus upgraders
- Cook: Upgrading returned to more normal levels with iPhone 6s/Plus
- Cook: Some mis-forecasting and channel inventory issues (too much) contributed to China declines YOY
- Cook: We are confident in forecasting return to growth overall and are very bullish on China in particular
- Much headroom in Chine with the LTE adoption rate being relatively low today and the growth of the middle class in China
- Cook: We are open to acquisitions of any size when they can help drive innovation and improve customer satisfaction
- Maestri: We are supply constrained on iPhone 7 and iPhone 7 Plus, so competitors’ issues don’t mean that much as Apple is selling as many iPhones as they can produce
- Maestri: We are very confident on trajectory of iPhone going forward
- Cook: Television is a segment of intense interest at Apple; we have some original content creation happening; it’s an area we’re focused on
- Maestri: The growth of the services revenue has been accelerating over the year; people that are using Apple services, over time tend to spend more as they are very loyal and engaged customers
- Cook: Most people would like a personal assistant with them all the time. We live in a mobile society and the advantage of having Siri on your phone is obvious. That’s not to say having one anchored to the home isn’t useful and a nice potential market. Our focus is globally, not just in the U.S.
- Cook on balance between privacy and AI. It’s a false trade off that some people would like you to believe that you have to give up privacy to get a service. Apple is working to deliver great services while maintaining users’ privacy
- Cook: We have the strongest pipeline that we’ve ever had and we’re really confident in the products in our pipeline (which we will not discuss)
- Cook: We have a strong sense of where we want to go (longer term plan) while also remaining very nimble
- Cook: iPhone 7 Plus camera is loved by users – tremendous amount of technology in that camera system
- Cook reiterates iPhone 7 Plus is severely supply constrained
- Cook: We saw a lot of competition in the U.S. among carriers this year
- Cook: The number of people that are or will move into the middle class in India is significant. India population is very young. This year and next year, there are enormous LTE/4G investments happening in India (which is good for iPhone). The government is more focused on infrastructure and job creation. The population of India will exceed China within the next decade. There will be a lot of people that will really want a smartphone and Apple intends to compete. There is a lot of headroom in India.
- Maestri: We want to continue to invest in the business in all areas while being efficient.
- Maestri: Gross margin is guided to improve sequentially due to better leverage and mix in Dec. quarter, but they are offset by cost structures of new products we’ve launched and plan to launch; YOY gross margin is impacted by one-time patent infringement award (from Samsung) and U.S. dollar appreciation – Apple generates 2/3rds of their revenue outside the U.S. – all of this impacts gross margin
- Cook: We review the capital return annually. We announce changes usually in April. We believe that AAPL is very undervalued. Via buybacks, we are investing in confidence in the company we know very well. We have a good track record of raising our dividend annually. We’ll say more on capital returns in April 2017.
- End of conference call.
- AAPL: 115.20, -3.05 (-2.58%), After hours: 6:01 PM EDT
As an Economist, I am the one who most often posts accurate data or more complete considerations of the question at hand. YOU are the one who posts "feelings" and make sweeping statements. For example, you think that only one economic input, labor cost, is what drove the move of all of these companies to move their manufacturing to off shore locations, when in actual fact it was the least of the considerations. You have already devolved the debate to insults and slurs by using an ad hominem attack on me instead of presenting your reasoned arguments. You want me to present facts while you present insults? I don't think so. I will no longer respond to you or your posts in this thread. You've revealed what you are. . . a TROLL.
Wall Street rigging the market. You see companies give great numbers and the stock tanks. They give bad numbers but say next will be better and the stock soars. Never makes sense.
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