Apple Q3 2016 Earnings: Down Again With $42.4B In Revenue & $7.8B In Profit

Today, Apple announced their financial results for their third fiscal quarter, and second calendar quarter of 2016. Apple posted a revenue of $42.4 billion, and net profit of $7.8 billion for the quarter, with $1.42 per diluted share. Compare that to Q3 2015, when Apple posted revenue of $49.6 billion, and profit of $10.7 billion ($1.85 per diluted share) for the quarter, showing another quarterly drop with a 14.5% decrease in revenue, and 27.1% decrease in profit. Gross Margin was at 38% compared to 39.7% the year ago quarter, and 63% of sales were international. Apple Q3 2016 earnings showed the second consecutive quarter of year over year declines with Apple’s 2016 results closer to 2014 earnings than the 2015 gains.

Apple’s guidance for this quarter was between $41 – $43 billion, so they came right in that range. As far as unit sales, the iPhone reached 40.4 million units in the quarter, compared to 47.5 million from the year ago quarter. Apple sold 9.95 million iPads, down from the 10.9 million in Q3 2015. Apple also sold 4.25 million Macs, which is just again down from the 4.8 in the year ago quarter. The company now has $231.5 billion in cash, and marketable securities, though with $68.9 billion in long term debt. Apple’s guidance for the fourth quarter of 2016 offers expected revenue of $45.5 – $47.5 billion, and gross margin between 37.5 and 38%.

As CEO Tim Cook describes,

We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter. We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”

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