Apple Reports Q3 2016 Earnings of $7.8B on $42.4B in Revenue
Apple today announced financial results for the third fiscal quarter (second calendar quarter) of 2016. For the quarter, Apple posted revenue of $42.4 billion and net quarterly profit of $7.8 billion, or $1.42 per diluted share, compared to revenue of $49.6 billion and net quarterly profit of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter. The results represent the second consecutive year-over-year declines in quarterly revenue and iPhone sales.
The company’s total revenue dropped 14.6 percent in the third-quarter ended June 25, also declining for the second quarter in a row. Apple said it sold 40.4 million iPhones in the third quarter, more than the average analyst forecast of 40.02 million, according to research firm FactSet StreetAccount.
Apple had reported a 16.3 percent drop in iPhone sales in the previous quarter, the first decline since the smartphone was launched in 2007. Sales of iPhones account for about two-thirds of the total sales of the world’s most valuable publicly traded company.
Sales in Greater China, once touted as Apple’s next growth engine, decreased 33.1 percent, compared with a 112.4 percent growth in the year earlier quarter and a near 26 percent fall in the second quarter. This was highly expected due to tough competition offered by homegrown firms like Xiaomi and LeEco in the market.
For its fourth fiscal quarter Apple is projecting revenue between $45.5 billion and $47.5 billion, so higher revenue than the current quarter, but still less than it earned a year ago during the same quarter ($51.5 billion). This likely includes at least the first weekend of sales of the iPhone 7 range, which Apple is expected to launch in September.