Michal Marek Apple announced financial results for the third fiscal quarter of 2016, and this time Tim Cook can relax. The Californian company exceeded Wall Street's expectations. However, it must be noted that after the disappointing last quarter, when Apple's revenue fell for the first time in 13 years, these expectations were not very high.
For the months of April, May and June, Apple reported revenues of $42,4 billion with a net profit of $7,8 billion. Although this is not a bad result in the context of Apple's current portfolio, compared to the same period last year, a relatively significant deterioration in economic results can be observed. In the third fiscal quarter of last year, Apple took in $49,6 billion and posted a net profit of $10,7 billion. The company's gross margins also fell year-on-year from 39,7% to 38%.
In terms of iPhone sales, the third quarter was quite weak in the long run. However, sales still exceeded short-term expectations, which can be attributed primarily to the warm reception of the iPhone SE. The company sold 40,4 million phones, which is almost five million fewer iPhones than last year's third quarter, but slightly more than analysts expected. As a result, Apple shares rose 6 percentage points after the financial results were announced.
“We are pleased to report third quarter results that show stronger customer demand than we expected at the start of the quarter. We've had a very successful launch of iPhone SE, and we're excited to see how the software and services introduced at WWDC in June have been received by customers and developers alike.”
Even after this year's third quarter, it is clear that iPad sales continue to decline. Apple sold just under 10 million of its tablets in the quarter, i.e. one million fewer than a year ago. However, the decrease in units sold is compensated for by the higher price of the new iPad Pro in terms of income.
As for Mac sales, there was an expected decline here as well. In the third quarter of this year, Apple sold 4,2 million computers, i.e. approximately 600 less than a year earlier. The slowly aging MacBook Air and the long-not-updated portfolio of MacBook Pros, for which Apple was probably waiting for the new Intel Kaby Lake processor, which was significantly delayed.
However, Apple did really well in the area of services, where the company once again achieved excellent results. The App Store made the most money in its history in the third quarter, and Apple's entire services sector grew by 19 percent year-over-year. Probably thanks to success in this field, the company was able to pay out an additional $13 billion to shareholders as part of the return program.
In the next quarter, Apple expects a profit somewhere between 45,5 and 47,5 billion dollars, which is more than in the quarter whose results were just announced, but less than in the same period last year. In the fourth quarter of last year, Tim Cook's company reported sales of $51,5 billion.
Even so, the decline can be described on all fronts. Only because the analysts were already quite skeptical, so they put the estimate lower and Apple got above that estimate with their ears scratched, so it's a success. So actually yuppie.
Show me another company that would despise similar results...
But god forbid, I agree that Apple and Cook can smile because the income is more than good despite the decline. Here it is rather a dig at the journalists, because they are supposed to be behind the critics and in general they are in almost all other media, because he is really a downer and everyone, even Timy Cook :), knows it. But here the article sounds like it's actually great and that's not good, because it's far from great. Apple has been lacking fundamental innovation for a long time, and if they came up with something new, they can't put it into practice quickly, and the market is starting to realize it, which has quite a lot of inertia after all.
They knew there would be a decline. After the results were announced, Apple's share price rose by more than 7%. So Apple finished better than analysts expected.
Please don't confuse the market and stocks. Enron was called America's most innovative company before its collapse, and its stock was skyrocketing. Although it's a bit of a bad comparison, because Enron cheated in the accounting, but the market and stocks just don't correspond very well. A company may be stable on the market, but shareholders will easily send its shares to the ground because it is raining somewhere. And conversely. And simply, whether we like it or not, Apple has simply not shown anything extra lately, the prices are very high, the Chinese market, on which it bets a lot, is now quite cold towards it, so all of this can backfire on it. Not that I really want it, I like Apple, but they should kick their ass a bit.
Agreement. But here you are on the "fan-page". And, unfortunately, this is often reflected in the objectivity of the author's view of the matter.