Apple’s Q4 2016 Results: $46.9 Billion Revenue & $9 Billion Profit

Today, Apple announced their financial results for their fiscal fourth quarter of 2016, and that includes their year end results, as their fiscal calendar runs from September to September. Apple earned $46.9 billion in revenue, and $9 billion in profit for $1.96 per diluted share. In comparison, Q4 of 2015 saw revenue of $51.1 billion, and profit of $11.1 billion for $1.67 per diluted share. The gross margin was 38 percent, compared to 39.9 percent in Q4 of 2015, and international sales provided 62% of the quarter’s revenue.

For the year, Apple earned $215.6 billion in revenue, and $45 billion in profit for fiscal 2016, while fiscal 2015 saw $233.7 billion in revenue, and $53.4 billion in profit. The company now has $237.6 billion in cash and marketable securities. In terms of expectations, Apple’s guidance for this quarter was $45.5 – $47.5 billion, and gross margin between 37.5 and 38%.

In terms of sales numbers, Apple sold 45.5 million iPhones, and 9.3 million iPads, compared to 48 million iPhones, and 9.9 million iPads in the year ago quarter. The iPhone sales numbers include the first few days that the iPhone 7/Plus went on sale, but supplies were limited. For the entire fiscal 2016, Apple sold 211.8 million iPhones, whiles iPad came in at 45.6 million. In 2015, Apple sold a record 231.2 million iPhones, while iPads came in at 54.8 million. That’s nearly 20 million less iPhones than last year, but Apple has now sold 1.03 billion iPhones in total. The iPad dropped once again for the quarter, and this time by 600K, and the year at 9.2 million, though 337.9 million iPads have been sold overall.

Beyond their iOS devices, Apple sold 4.9 million Macs for the quarter compared to 5.7 million in Q4 2015, and 18.48 million for the year, which is down from 18.9 last year. The iTunes/App Store generated $6.3 billion for the quarter, up from the $5.1 billion in Q4 2015. The iPad has dropped below both Mac sales, and services (including iTunes & App Stores), for the second year running.

You can listen to the full financial results conference call here. Apple had their third quarter in a row of declines, and that contributed to the first year of year decline since 2001. Apple’s guidance for Q1 of 2017 is $76-78 billion in revenue, and gross margin between 38-38.5%. As Apple CEO Tim Cook describes,

Our strong September quarter results cap a very successful fiscal 2016 for Apple,” said Tim Cook, Apple’s CEO. “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.”

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