apple hq headquarters

Apple on Tuesday released its earnings report for the second [fiscal] quarter of 2016. The Cupertino company fulfilled expectations that it was going to report its first ever year-over-year decline in iPhone sales, moving just 51.2 million handsets vs. 61.2 million in Q2 last year. Revenue is also down substantially from the year-ago quarter.

Here is a breakdown of Q2 2016 numbers compared to figures from Q2 2015.

  • Revenue: $50.6 billion versus $58 billion last year
  • iPhones: 51.2 million versus 61.2 million last year
  • iPads: 10.2 million versus 12.62 million last year
  • Macs: 4 million versus 4.56 million last year

And here are some comments from CEO Tim Cook and CFO Luca Maestri:

“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Tim Cook, Apple’s CEO. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”

“We generated strong operating cash flow of $11.6 billion and returned $10 billion to shareholders through our capital return program during the March quarter,” said Luca Maestri, Apple’s CFO. “Thanks to the strength of our business results, we are happy to be announcing today a further increase of the program to $250 billion.”

Screen Shot 2016-04-26 at 3.46.53 PM

Considering that Apple warned investors during its last earnings call that it expected sales and revenue declines, the numbers aren’t too surprising. They are worrisome, though, given that Apple still has two quarters until it introduces a new iPhone model. And even that one isn’t expected to move the needle much.

Apple’s Q2 earnings call will start in just a few minutes. If you’d like, you can listen to it live via the investors portal, or you can tune into iDB for our recap.

  • FrankJL

    well, what do they expect by releasing the same phone for close to 10 years.

    Funny – their think different campaign was all about progress beyond normality. But yet they fell into one of Einsteins quotes “doing the same thing over and over again and expecting different results is INSANITY!!

    • igorsky

      “well, what do they expect by releasing the same phone for close to 10 years”

      This is easily the dumbest statement I’ve read today…congrats!

      • Tommy

        yes! 😀

      • The King

        Definitely a dumb comment. However, I will say that Apple hasn’t done much with the iPhone since touch ID and the 5S. That is a fact. Apple has banked on camer, processor and the new iOS selling point for to long now. they need some new shit.

  • M_Hawke

    Well, at least they are still making money and turning profits. I think it is indicative of how people are taking longer to upgrade because either they are short of money or that the tech they own is good enough.

  • Ara Rezaee

    Time to create a new market (something that Apple is very good at), don’t know what they will come up with but the iPhone can’t be Apples only big seller for much longer

    • Tommy

      That’s the reason they made the IPad Pro and it’s a flop.

      • Ara Rezaee

        iPad Pro has a very specific audience hence the “Pro”, the Apple Watch was their first and only attempt and I don’t think it’s doing well

      • Tommy

        Wait till the iPhone Pro is released and see if you can retain your “very specific audience” definition. No hate, just saying.

      • The King

        Tim Cook said that they noticed that it’s different from phones to tablets. Yes, the market is still there for tablets, but no, people will not update each year for a new one that’s either lighter or has a stronger processor. It doesn’t make sense to update from an air 1 to an air 3. People don’t update their tablets as often as their phones, and them releasing a new tablet every year isn’t really the best idea. Them not releasing another watch and just continuing to support the device makes more sense. But they need to refresh their iPod line. They’re mac, as much as I love their computers, I way too expensive for just 4GB Ram when the going ram for other comps is 8 with SSD storage at 500 for apples 120 storage price. They are making their own mistakes in my opinion.

  • n0ahcruz3

    Im not surprised, 6s is a solid phone but 3D touch won’t lure me to upgrade. And people want a new design. And also competition is getting tighter other brands putting insane specs with the same price as the iphone or even cheaper. I really hope 7 will have a significant change aesthetically speaking other than reducing antenna lines and putting extra lens for the plus. Im still an iOS guy tho lol

  • Mark S

    “They are worrisome, though”

    I’m not worried. I don’t care how well apple does or doesn’t do. I don’t have any stock. They’re just a company. Somebody makes a better product (fire tv which I can root) I buy it.

  • jay

    I can tell 5 phones they have a better design than the iPhone. Android making big steps forward with better OS and design. For years Apple has the better camera but now that changed with a lot of good phones coming out.

    I don’t think Apple will bring another S phone next year. A lot products were release with unfished software. Think Apple grew to fast and has not enough engineering power

    • The King

      That’s an issue. Your selling point since the iPhone 5 has been your camera. The 4S to the 5 has no difference but design and LTE. But they sold it as the newest thing since the microwave. The 5S had touch ID, the 6 looked different but wasn’t different at all but bigger. There wasn’t any new features outside of the new iOS that the 5S received at that time. The 6S has force touch and changed the camera, but when you’re selling point is camera and processor ingredients speed 4 years straight, people are gonna want more.

      • jay

        Not the issue how many phones they sell is that they sell less. Same as the iPad less and less every year now