apple hq headquarters

Apple on Tuesday released its earnings report for the first [fiscal] quarter of 2016. As most of you know, this was the iPhone-maker’s holiday quarter, where most consumer electronic companies—particularly Apple—tend to put up monster numbers. And of course Tim Cook and his team did not disappoint.

Once again, Apple has delivered a record-breaking first quarter. The company sold 74.8 million iPhones, up slightly from last year’s 74.5 million, and increased its revenue by more than $1 billion. Not all of the numbers are impressive though, as Mac sales are slightly down and iPad sales continue to tumble.

Here is a breakdown of Q1 2016 numbers compared to figures from the same quarter in 2015.

  • Revenue: $75.9 billion versus $74.6 billion last year
  • iPhones:  74.8 million versus 74.5 million last year
  • iPads:  16.1 million versus 21.4 million last year
  • Macs: 5.3 million versus 5.5 million last year

And here are some comments on the numbers from Tim Cook and Apple’s CFO Luca Maestri:

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Luca Maestri, Apple’s CFO. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”

Unaudited summary data:

q1 2016 earnings

Perhaps the most significant number here, or at least the one Wall Street is paying the most attention to, is the nearly flat iPhone sales. It would seem growth for the handset has stalled, and the company has indicated that it may even decline in the current quarter. This is a big deal for Apple’s biggest product.

At the time of this post, APPL is [surprisingly] holding steady around the $100/share mark.

  • Yujin

    And the stock tanks…3,2,1…

    • jackster12

      Seriously. You would think Obama was running the company, the way numbers like these get dismissed by Apple-detractors. Two years ago, I had a financial advisor try to talk me into trading in my Apple shares for… wait for it… Samsung. Why I still have the same advisor, I don’t know. But this kind of reaction to the recent report — not just recent (it’s holding at $100 a share) but the declines leading up to you — shows you what really doesn’t work about Wall Street.

  • CryptoCoin420

    Now pay your fair share of TAXES Apple!!! Shame on you for hurting our economy!!

    • Apple pays all the taxes they owe in the US. Why would they pay taxes on profits made outside the US?

      • Benedict

        If you make profit in European countries, you supposed to pay taxes there. Apple and other companies just pay fractional amount of the those.This way, each country loses billions though the profit was earned and taken domestically by these companies.

      • That’s business. Apple doesn’t rip off anybody. They just operate and take advantage of the laws in different country. Some countries such as Irrland even created special laws to allow companies like Apple to pay less taxes. Again, the company is doing nothing immoral. If the law allows you to pay less taxes via some loophole, will you seriously not take advantage of it? Of course not. It’s the same with Apple. The fact that they generate crazy amounts of money doesn’t change anything. It’s a business. Their goal is to make money.

      • Benedict

        Other companies like Telekom, Siemens and SAP pay billions for taxes. It might (still) be possible by law but it is of course immoral. That’s why the EU will address this issue now. Italy already adjudge it as against their law.
        p.s. Apple rips off anybody who buys their products. Otherwise the profit wouldn’t be so high.

    • jackster12

      Apple directly employs 76,000 Americans. It indirectly employs, via iOS app development etc. 1.4 million more. U.S. based 3rd party product and part suppliers employ another 361,000 Americans. That right there is nearly 2 million jobs, here in the U.S. Now add in the retail and product servicing jobs in non Apple Stores that still have an Apple focus. Add in the number of jobs for authors and teachers who write or teach how to use or develop for Apple products. Plus the many filmmakers, musicians, and artists who get both inspiration and ease of market entry, courtesy of Apple’s more innovative products. Plus, the many Americans whose jobs are easier — or whose jobs didn’t exist before — thanks to the kind of touch screen smartphones and tablet devices that Apple ushered into existence. Yes, Apple has some creative accountants. But it’s hard to make the case that they’re “hurting” the American economy.