Tag - Earnings
Apple revenues fell by $11 billion year-over-year to $50.6 billion in its second 2016 fiscal quarter, reporting its first drop in quarterly revenue since 2003, the company has announced. The results missed consensus analyst estimates of $52.2 billion in revenue, though they fell within Apple's guidance of between $50 billion and $53 billion. Profits were $13.6 billion, while earnings per share was reported as $2.32, above estimates. Gross margin fell incrementally, from 40.1 percent to 39.4 percent over the same quarter last year.
Later today, Apple will posting its revenue and earnings for the company's fiscal second quarter of 2016, which ended on March 31. Following warnings from analysts and the company alike that 2016 would be a "tough compare" year following the iPhone 6 (since it was the first "phablet-sized" iPhone line, releasing much pent-up demand), the iPhone maker is expected to report its first year-over-year drop in revenues since 2003. Sales of the iPod, and later iPhone, buoyed the company's fortunes and pushed it to new quarterly records for the past 13 years.
At a "Town Hall" meeting with employees following the company's Q1 earnings report, Apple CEO Tim Cook reportedly rejected the notion -- long favored by analysts -- that Apple needs a "pared down" and inexpensive iPhone model in order to attract buyers in developing or "emerging" markets like India. While most of the meeting dealt with a rehash of information given during the analyst call, some was concerned with employee matters like retention incentives, as well as saying the Apple TV and tvOS both have "bright" futures.
Apple revenues rose by $1.3 billion year-over-year to $75.9 billion in its first 2016 fiscal quarter, which ended in December following the usual holiday rush, the company has announced. Profits were $18.4 billion, while earnings per share was reported as $3.28. The results failed to beat consensus analyst estimates of $77.4 billion in revenue, though they fell within Apple's guidance.
Wall Street analysts are heading into the quarterly results conference call for Apple's fiscal Q1 2016 results with an expectation that the company will once again set an all-time record for quarterly revenues, handily beating last year's $74.6 billion in earnings by a current consensus estimate of $2 billion. A polling of a broader range of analysts by Fortune magazine offers an even more rosy $77.4 billion, but many analysts are concerned that iPhone sales will not top last year's results of 74.5 million units.
Apple has announced that it will reveal its fiscal Q1 earnings on January 26 at 2PM PT (5PM ET) with its usual live audio webcast that is available for public streaming. The December quarter included the holiday buying season, but investors are worried that Apple will be unable to match last year's blockbuster $74.6 billion in revenue and $18.04 billion in revenue, which was the best quarterly earnings and profit any company has ever recorded. Last year's Christmas buying season was boosted by the introduction of the larger iPhone 6 line into China and the US.
Apple revenues rose 25 percent year-over-year to $51.5 billion in its fourth fiscal quarter, which ended in September with just a week or so of availability for its latest iPhones, the company has announced. Profits were up 30 percent to $11.1 billion, while earnings per share climbed from $1.42 to $1.96, a 38 percent increase. The results beat consensus analyst estimates of $51.11 billion in revenue. International sales jumped to 62 percent of revenue, fueled by strong growth in China.
A new forecast from analysts and a late prediction from investment firm Cowen and Company have combined to move the needle slightly upwards in terms of the optimism of guesses on Apple's earnings for its fiscal Q4 quarter, which will be reported later today (MacNN will, of course, have live coverage). Compared to a recent polling of analysts by Fortune magazine, the new consensus rises just over the top of Apple's guidance, now at $51 billion in revenue.
Another interesting week at MacNN brings us plenty to talk about on Episode 25 of The MacNN Podcast, ranging from the FCC approval of the AT&T/DirecTV deal for no clear reason (but with a bunch of conditions), to our new column "My Stupid Fault." We also include a full report on Apple's fiscal Q3 and the uncalled-for drop in the stock, the results of our testing of Apple's new third-party SSD Trim support, and more.
Last month, Apple announced that its financials for fiscal Q2 2015 would be released on April 27. Just one day before the conference call, analysts are rushing to get their predictions out regarding what is very likely to be another monster quarter for the company. The short version is that the iPhone will continue to drive the lion's share of revenue and grow sales from the year-ago quarter, while the downward pressure on earnings from the iPad will continue -- and nobody's really sure what's going to happen with the Apple Watch.
Now AAPL Stock: 93.24 ( -0.95 )
Netflix iOS app now offers cell-data controls
In a new update to its iOS app on Thursday, subscription entertainment service Netflix has introduced new user controls for streaming over cellular networks to prevent overages, throttling, or other usage issues caused by the high data rate of streamed HD video. Users can choose from a given amount of streaming video that "costs" 1GB of cellular data, which lowers video quality to allow as much as four hours of video per GB (the "automatic" setting provides three hours, while higher quality settings reduce the time to two hours, or one hour at the best setting). In addition, the updated app now offers more 3D Touch options from the app icon, beyond the "peek and pop" previews for video. http://apple.co/24AD1vR
Bentley launches app for Apple Watch
Carmaker Bentley now offers an Apple Watch app for its Bentayga SUV -- a vehicle with a starting price of $229,000 -- that offers some advanced automotive functions not previously seen in other car apps for Apple's wearable. The app allows Watch wearers to control various seat adjustments, environmental controls (including seat massage), and the entertainment system. In addition, various vehicle stats are available at a glance, including distance traveled and vehicle speed. The app is available free on the App Store. http://apple.co/24AyXvs
Lunch with Cook auction nets $515K
The Charitybuzz auction that offered lunch with Apple CEO Tim Cook at Apple HQ and a pair of passes to a future Apple event (winner's pick) has ended with a high bid of $515,000, the highest amount the annual auction has fetched since 2013. Proceeds of the auction will benefit Cook's preferred charity, the Robert F. Kennedy Human Rights organization, where Cook was recently named to the board of directors. The winner, who was unnamed, will be responsible for their own transportation and accommodation, and Cook has up to a year to schedule the meeting -- making it possible that the winner will be among the first to dine with Cook in the new Campus 2 cafeteria, which is set to open along with the rest of the new facility early next year. http://bit.ly/236Wf9N
Free Windows 10 upgrade program ends July 29
Ending speculation, Microsoft has officially announced that it will end free Windows 10 upgrades on July 29, the one-year anniversary of the rollout of the OS. Following the 29th, Microsoft's ubiquitous OS will retail for $119 and up. http://bit.ly/1O0a7kA
US tech giants to candidates: support TPP
Tech giants including Apple, Facebook, Amazon and Uber are among thirteen major US corporations who have written an open letter to Donald Trump and Hillary Clinton urging them to support the Trans-Pacific Partnership (TPP) deal, reports Reuters. Although not yet made public, the letter also asks the candidates to make it easier for the companies to hire tech workers from overseas. Both are not happy with the TPP deal, although Trump is sterner in his opposition to any kind of trade deals between countries. Trump has not rejected outright the idea of importing high-tech talent from overseas, while Clinton has already voiced her support for the idea. http://reut.rs/1Wb0Zwq
Apple mandates June 1 app IPv6 support
Apple has set the deadline for IPv6 support for App Store-supplied software. On June 1, apps thast use a custom networking stack and that are submitted to the app store must support IPv6-only networks. The rule, announced last year as coming soon, will only affect a small portion of submitted applications that do not use the NSURLSession and CFNetwork APIs. http://apple.co/24yBTIY
YouTube Unplugged OTT service coming 2017?
As part of the continuing YouTube evolution, the video streaming service is reportedly considering a paid subscription service that would provide users "over the top" cable TV service. According to sources familiar with the matter, the service has been in the works since 2012, has already made changes to accommodate the live video feeds, and could debut the offering as soon as 2017. http://bloom.bg/1rvx8BW