Apple’s financial results for the quarter ended 31 December of 2016 reveal a record quarterly revenue of $78.4 billion USD.
Prior to the revelation of its latest quarterly earnings report, Apple stood on shakier financial ground; while the company’s service divisions show enormous growth, slowing device sales depicted a worrying future for the likes of the iPhone, iPad, and Mac.
With the release of the iPhone 7 and 7 Plus – in addition to the MacBook Pro with Touch Bar – Apple has had the benefit of an eventful quarter to rack up a record quarterly revenue tallied at a whopping $78.4 billion USD.
In an official press release, Apple CEO Tim Cook offered that “We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch… Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
Among those successes, the popularity of Apple’s iPhone 7 and iPhone 7 Plus stands out, with the company’s total iPhone sales surging to 78 million. For parity, Apple reported in its Q3 2016 earnings call that it had sold 40.4 million iPhones as compared to last year’s (Q3 2015) 47.5 million – a drop of 15%.
The second major success for Apple is the continued growth of its service division, which has increased from a reported $6 billion USD in Q1 2016 to $7.2 million in Q1 2017.
2017 will be a crucial year for Apple’s services divisions – last year, Apple’s CFO, Luca Maestri stated that “Our Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record”, while CEO Tim Cook quipped, in reference to the company’s service divisions, that “we expect it to be the size of a Fortune 100 company next year.”
Despite an outcry from high-end and professional users over the introduction of the MacBook Pro with Touch Bar, Mac sales remained relatively improved at 5.3 million units; in Q3 2016, the company reported a notable decline in sales from 4.8 million to 4.3 million units – a drop of 15%.
The report sheds light that Apple is steadily losing ground in iPad sales; the company previously sold 16 million units in Q1 2016, and has now sold 13 million units in its latest financial quarter. That decline could be largely attributed to the fact that the company is widely anticipated to introduce a revitalized iPad Pro line at some point his year, with much talk surrounding the introduction of a near-bezeless model.
Apple has offered guidance for Q2 2017, indicating an expected revenue between $51.5 billion and $53.5 billion, a gross margin between 38 percent and 39 percent, operating expenses between $6.5 billion and $6.6 billion, other income/(expense) of $400 million, and a tax rate of 26%.
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Read the official release here