The Apple company has just announced the financial results for Q1 2016 and as it had predicted three months ago, we are talking about substantial decreases in sales of iPhone terminals, receipts and profit also being affected by this decrease in interest towards its product star.
51.2 million iPhone terminals, 10.3 million iPad tablets and 4 million Macs were sold by the Apple company in Q1 2016 with revenues of 50.6 billion dollars and profit of 10.5 billion dollars, the decrease being substantial compared to the same period of last year.
In the same period last year, the Apple company sold 61.2 million iPhone terminals, 12.6 million iPad tablets and 4.6 million Macs, collecting 58 billion dollars and having a profit of 13.6 billion dollars.
As Apple announced to us, we are talking about the first decrease in sales for iPhone terminals since 2007 and up to now, but also about the first decrease, since 2003, in receipts and profit in the same period, the difference between the two fiscal quarters being very large.
Although the declines are not quite as disastrous as the analysts predicted, the price of Apple's shares started to fall on the American stock market and it remains to be seen if at 00:00 Tim Cook managed to calm the investors.
Apple Reports Second Quarter Results
Capital Return Program Expanding to $250 Billion
CUPERTINO, California — April 26, 2016 — Apple® today announced financial results for its fiscal 2016 second quarter ended March 26, 2016. The Company posted quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion, or $1.90 per diluted share. These results compare to revenue of $58 billion and net income of $13.6 billion, or $2.33 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 40.8 percent in the year-ago quarter. International sales accounted for 67 percent of the quarter's revenue.
"Our team executed extremely well in the face of strong macroeconomic headwinds," said Tim Cook, Apple's CEO. "We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices."
The Company also announced that its Board of Directors has authorized an increase of $50 billion to the Company's program to return capital to shareholders. Under the expanded program, Apple plans to spend a cumulative total of $250 billion of cash by the end of March 2018.
"We generated strong operating cash flow of $11.6 billion and returned $10 billion to shareholders through our capital return program during the March quarter," said Luca Maestri, Apple's CFO. "Thanks to the strength of our business results, we are happy to be announcing today a further increase of the program to $250 billion."
As part of the updated program, the Board has increased its share repurchase authorization to $175 billion from the $140 billion level announced last year. The Company also expects to continue to net-share-settle vesting restricted stock units.
The Board has approved an increase of 10 percent to the Company's quarterly dividend, and has declared a dividend of $.57 per share, payable on May 12, 2016 to shareholders of record as of the close of business on May 9, 2016.
From the beginning of its capital return program in August 2012 through March 2016, Apple has returned over $163 billion to shareholders, including $117 billion in share repurchases.
The Company plans to continue to access the domestic and international debt markets to assist in funding the program. The management team and the Board will continue to review each element of the capital return program regularly and plan to provide an update on the program on an annual basis.
Apple is providing the following guidance for its fiscal 2016 third quarter:
- revenue between $41 billion and $43 billion
- gross margin between 37.5 percent and 38 percent
- operating expenses between $6 billion and $6.1 billion
- other income/(expense) of $300 million
- tax rate of 25.5 percent
