Apple’s earnings for Q1 2016 have broken the world record for the most profit made by a company in one quarter.
With total revenue hitting $75.9 billion, Apple managed to rake in a record $18.48 billion in profit. The company managed to increase iPhone sales to 74.8 million despite predictions from Wall Street that the company would see decline. However, Apple did warn investors in its guidance that next quarter may be the the first time growth drops.
Despite missing on some numbers, Tim Cook praise Apple’s team calling Q1 2016 “Apple’s biggest quarter ever.”
“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.”
Apple didn’t exactly blast past the year-ago quarter’s 74.6 billion in revenue and $18 billion in profits. Revenue was up in China, Europe, and Asia Pacific but down in Americas and Japan. That may worry investors, but Apple CFO Luca Maestri says the company’s still doing great despite global economic issues.
“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.”
Apple is providing the following guidance for its fiscal 2016 second quarter:
revenue between $50 billion and $53 billion
gross margin between 39 percent and 39.5 percent
operating expenses between $6 billion and $6.1 billion
other income/(expense) of $325 million
tax rate of 25.5 percent
Source: Apple
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
11 responses to “Apple racks up largest quarterly profit in history”
“Apple racks up largest quarterly profit in history”
Let’s hope history doesn’t repeat itself with ANALysts and the markets taking Apple straight down. I can hear it now: “Sure, Apple did great, and even turned in the best earning in its entire history, but we were expecting more. And we WANT more.” Then there’s the familiar chant, “Yeah Apple is doing really well, but they •can’t• keep •that• up, so we’re downgrading it.” Finally, there’s this one: “Yeah yeah, iPhones are great an all that, but Apple has trimmed production for next quarter, and that •must• mean sales have topped. And since iPhone is the only worthwhile thing Apple does, it’s headed for disaster.”
Sadly, these are some of the prognostications and pronouncements Apple has had to live with for decades. Happily, it’s always a bunch of hyperbole. (Insert your favorite word there.)
Oh you can already find some sites headlines talking about lower iPad sales than expected. BBC is leading right now with “Apple reports slowest ever iPhone sales in first quarter”.
Yep. People, and especially bloggers, ANALysts and Apple haters love to report on any and everything negative, even if it’s actually positive. It’s the Trump Effect, formerly known as the Roadside Tragedy Effect. It’s apparently human nature, not just lo took, but to stare at the ugly and negative.
$199 iphone now $649-$949..just say no
Do you keep posting the same comment on every story? Do you really have no idea how subsidised handsets work and how you actually end up paying more for them over the contract period?
I know exactly as I have a brain. What matters is what the average buyer perceives (Those without brains or fanbois)
Apple, like all companies have their cycles. These have not become apparent over the past few years because:
1) The launch of the iPhone caused a surge which made the decline of the iPod insignificant
2) The launch of the iPad was soon enough before the saturation of the smartphone business hence the massive growth
3) The iPhone sales have delayed saturation due to the size increases in iPhone 5 and 6 which increased their market pool
4) Since then the tablet market has become saturated and is in decline, both specifically for Apple and in general for all others. There isn’t much new in the tablet market
5) The Apple Watch and Apple TV didn’t cause massive sales boost and wasn’t expected to be doing that anyway
6) It’s just obvious that Apple will experience “less growth” or even “slightly negative growth”. It will still sell massive quantities of products and increase their devices out there
7) Given the last statement, Apple’s push to more and more services has become obvious in 2015 and succeeded supporting the growth. An excellent strategy to supplement the expected decline in growth or sales.
8) There is no such thing as “Apple is doomed” at least for the next 5 years.
9) Of course analysts will revise their estimates after each quarter, that’s their job. Plus stocks in general are in a slump this January, even more than other years.
10) There is an imminent small recession in the US plus even more slowing down in China which will directly affect Apple like any other company.
Don’t over-read the headlines, read between the lines, read the numbers.
I read $75 billion sales and 18.5 billion profit, despite wall street expectations… Seems llke the experts don’t know what the heck they’re talking about.
They are always adjusting mate. It’s not an exact science and it’s there for guidance. Anyone who believes differently can do a different strategy and win if the others are wrong.
100% of the companies in the world would like to have this problem but the “experts” are worried…. It’s no wonder the stock market is like a yo yo. These idiots have no idea what they’re talking about. Isn’t boffo sales and profit enough?
While I have nothing against Apple or iPhone, and have used iPhone, Android and Windows 10 mobile, I just can’t wrap my head around this:
“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” – really, most innovative products that Android had present for years before iPhones?