Copyright © 2016
Tag - Revenue
Despite missing the analyst consensus targets for both revenue and iPhone sales in Q1, as reported earlier Apple set all-time records in almost all areas of its business; it just didn't grow as much as Wall Street had anticipated, and the news about next quarter is genuinely tough, with a significant year-over-year drop in iPhone sales, the first for the company since it introduced the product nine years ago. Despite the various troubles Apple is dealing with even amidst record revenues, there were several bright spots that got overlooked, including an important milestone in the history of Apple: one billion active devices.
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.
Fortune has released its annual list of top US companies, and Apple is again situated at number five on the list, following the same four companies it did last year: Walmart at the top of the list, followed by Exxon Mobil, Chevron, and financial firm Berkshire Hathaway. The listing, which prizes raw revenue over most other factors, noted however that Apple had the highest profits and market share value of any other company on the list.
A new report by analytics firm App Annie has revealed that Apple and Google, as the progenitors of iOS and Android respectively, are locked in a roughly stalemated battle when it comes to revenues from apps versus app downloads. Google's Android enjoys the majority of app downloads, as it has for some time -- but continues to be unable to catch Apple in terms of being able to reward developers for their work. In a set of charts from the analytics firm, Apple's revenue from app sales is about 70 percent higher than Google Play, while Google's downloads outpaced Apple's by 70 percent.
A new report from the Recording Industry Association of America (RIAA) finds that revenue from music streaming services such as Beats Music, Pandora, and Spotify have now in total beaten out revenue from CD sales in the US, capitalizing on the latter's continued fall from grace (largely thanks to excessively high CD pricing). Both formats are still well behind download sales as the top revenue stream, but even that format is gently declining.
Apple's stock closed on Wednesday at a new all-time high, closing at $119.56 for the day, breaking the record set on November 26 when it closed at $119 even. The company, now valued at $696.41 billion -- more than a third more than the next most valuable publicly-traded company -- recently reported the best all-time quarterly revenue and profit of any company ever. The latest peak comes after a spike a week ago, following the results of the quarter.
In addition to being the best quarter in the company's history, Apple's Q1 results also blew away quarterly revenue and profit figures for any company ever, according to credit rating analysts Standard & Poor's. Even more remarkably, CFO Luca Maestri noted repeatedly that fluctuations in major currencies (such as the Russian ruble and the unusually-strong US dollar) actually cost the company a potential five percent -- or $3.73 billion -- in additional revenue.