Apple racks up largest quarterly profit in history

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Apple's back on top again.
Apple's back on top again.
Photo: Apple

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