Apple Announces Q4 2016 Earnings Report: $46.9 Billion In Revenue, 45.5 Million iPhones, 9.2 Million iPads And 4.9m Macs Sold
Today, Apple has officially announced its Q4 2016 earnings report ahead of its critical holiday season. The company reports a revenue of $46.9 billion and earnings of $1.67 per share. Apple has also shipped 45.5 million iPhones, 9.3 million iPads and 4.9 million Macs. By way of contrast, Apple during the year-ago quarter posted revenue of $51.5 billion and a quarterly profit of $11.1 billion, while it sold 48 million iPhones, 9.8 million iPads, and 5.7 million Macs. Meanwhile, Apple's earning per share (EPS) during its fiscal fourth quarter last year checked in at $1.96.
Apple CEO Tim Cook spoke fondly of the company's "strong" results, noting that the company is "thrilled" with the customer response to iPhone 7, iPhone 7 Plus, and Apple Watch Series 2. Additionally, Cook noted that Apple's Services sector grew 25 percent to set another record:
"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". "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".
Additionally, Apple's massive pile of cash grew $6.1 billion in Q4 2016, putting it at $237.6 billion, a record for the company. Going into the fourth quarter, Apple has one huge advantage it was not expecting: The Galaxy Note 7 fiasco. Samsung's Galaxy Note 7 was one of the few phones that could place a significant dent on the iPhone 7 Plus sales. However, a series of investigations showed that the Note 7 was prone to exploding, and forced Samsung to withdraw Note 7 from market.
Q4 marks our first look at the iPhone 7's early effect on Apple numbers, though it is worth noting that the iPhone 7 came out just a week before Apple's Q4 ended, so the device likely didn't have a huge impact on numbers this quarter. The holiday quarter, however, will be a different story.
As usual, Apple is not breaking out Apple Watch sales for "competitive" reasons, but various other reports have offered a look at the sales of Apple's wearable. Apple is giving the following guidance for its fiscal 2017 first quarter:
- Revenue between $76 billion and $78 billion
- Gross margin between 38 percent and 38.5 percent
- Operating expenses between $6.9 billion and $7 billion
- Other income/(expense) of $400 million
- Tax rate of 26 percent
Looking ahead to Apple's holiday quarter, the company is expecting revenue to fall in the range $76 billion and $78 billion. After the announcement, shares of Apple were up significantly.