15 interesting points from Apple’s Q1 2016 earnings call

Apple Store (Fifth Avenue, exterior 001)

Apple announced the financial results for its fiscal first quarter of 2016 this afternoon, and the numbers are pretty solid. The company broke its own records on handset sales, moving 74.8 million iPhones, and revenue, garnering nearly $76 billion during the three-month holiday period.

We’ve just finished up the conference call, where Tim Cook and CFO Luca Maestri discussed Apple’s performance over the three-month period, and offered up some insights into its future. And as usual, we’ve rounded up the 15 most interesting points from the call below.

  • Tim Cook: we’re reporting Apple’s strongest financial results ever.
  • Apple now has $216 billion in cash.
  • Apple’s ‘Other’ category, which includes TV, Watch, Beats and iPods, set a record with a revenue of $4.35 billion.
  • Services generated $6.1 billion, plus $548 million from a patent infringement dispute.
  • Recent surveys say customer satisfaction rate for 6s and 6s Plus is at 99%; iPhone loyalty rate is almost twice as strong as next brand.
  • Customer satisfaction rate for iPad Air 2 is at 97%.
  • All-time record sales of iPhone, Apple Watch and Apple TV.
  • iPhone ASP (average selling price) was highest ever $691.
  • Tim Cook “blown away” by level of Android switchers [to iPhone]–highest ever by far.
  • 60% of iPhone installed base prior to iPhone 6 launch have not upgraded to a new iPhone yet.
  • Apple expects iPhone sales to decline in the current quarter.
  • Apple surpassed 1 billion active devices for the first time.
  • Apple has now spent $153 billion of the $200 billion authorized in stock buyback plan.
  • Tim Cook on virtual reality: “I don’t think it’s a niche. I think it’s really cool, and has some interesting applications.”
  • Tim Cook: “As for R&D, we’re continuing to invest without pause. We have great things in the pipeline.”

Additionally, in response to a veiled question regarding the possibility of a cheaper iPhone model, Cook explained that he does not see the company deviating from it’s current new-older-oldest strategy. I found this particularly interesting given the recent 4-inch iPhone rumors.

If you want to listen to today’s earnings call, a replay will be available here for a limited time.