Ap­ple’s Q4 re­sults

Bet­ter than ex­pected sales with 45.5 mil­lion iPhones sold, but rev­enue con­tin­ues to slide, re­veals Caitlin Mc­Garry

iPad&iPhone user - - CONTENTS -

Ap­ple sold 45.5 mil­lion iPhones in the fourth quar­ter – also its fi­nal quar­ter of fis­cal 2016 – though that in­cludes just two weeks of iPhone 7 sales and only the ear­li­est signs of Sam­sung’s Galaxy Note 7 catas­tro­phe im­pact.

The iPhone sales were bet­ter than ex­pected. An­a­lysts had fore­cast 44.8 mil­lion phones shipped in Q4, which Ap­ple hand­ily ex­ceeded. The firm made a $9 bil­lion profit off of $46.9bn in rev­enue in Q4, down year-over-year from an $11.1bn profit off $51.5bn in Q4 of 2015. And while prof­its and

rev­enue are down pretty much across the board, Ap­ple is again choos­ing to fo­cus on its ser­vices, a bright spot in the com­pany’s port­fo­lio. Ser­vices rev­enue, which in­cludes iCloud, Ap­ple Mu­sic, iTunes, and the App Store, grew 24 per­cent to $6.3bn in the fourth quar­ter.

Ap­ple CEO Tim Cook said in the com­pany’s earn­ings re­port that the com­pany is “thrilled with the cus­tomer re­sponse to iPhone 7, iPhone 7 Plus, and Ap­ple Watch Series 2,” as well as the pop­u­lar­ity of its ser­vices.

An­a­lysts had ex­pected Ap­ple to sell 45 mil­lion iPhones, 8.5 mil­lion iPads, and 5.1 mil­lion Macs, re­sult­ing in rev­enue of $47bn – bet­ter than most com­pa­nies, but down from $51.5bn year-overyear. Ap­ple it­self an­tic­i­pated rev­enue of $45.5to $47.5bn. The com­pany did both bet­ter than ex­pected, with iPhone sales bet­ter than an­tic­i­pated and 9.2 mil­lion iPads sold, and worse, with 4.9 mil­lion Macs sold. Mac rev­enue con­tin­ued its de­cline with a 17 per­cent drop year-over-year, a trend Ap­ple may be able to re­verse by re­fresh­ing its MacBook line-up.

But Q4 is never a stand-out for Ap­ple. In­stead, we look to the com­pany’s hol­i­day quar­ter, where the com­pany is fore­cast­ing rev­enue of $76- to $78 bil­lion in Q1 2017. Ap­ple has watched its rev­enue grow by leaps and bounds ev­ery year since 2001, as Ven­tureBeat noted, when it re­ported $5.36bn in rev­enue, but that ended in the fourth quar­ter of 2016. The com­pany re­ported its first full yearover-year de­cline with $215.6bn in rev­enue for its fis­cal year 2016 – clearly not a fail­ure, but still a slight drop from last year’s $233.7bn.

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