Apple announced its third quarter 2016 financial results and posted a quarterly revenue of $42.4 billion. Techcrunch reports that the company managed to beat analyst’s estimates of $42.08 billion revenue, but it performed very poorly as far as the previous quarter is concerned. The difference in earnings have been listed below:
Q3 2016 results
- Revenue generated: $42.4 billion
- Revenue generated in the United States: $17.9 billion
Q2 2016 results
- Revenue generated: $50.5 billion
- Revenue generated in the United States: $19 billion
The difference in earnings is due to poor iPhone and iPad sales, which are regarded as the primary bread and butter of the company. Tablet sales could be slowing down since they might not provide a suitable alternative to users. To be fair, decent spec’d notebooks carry a smaller price tag than flagship tablets and also bring much more to the table as far as tackling work-related tasks are concerned. Additionally, iPhone sales growth might have slowed down in this quarter because consumers might be getting ready to upgrade to the upcoming iPhone 7. Given below is a comparison of iPhone and iPad sales for the second and third quarter of 2016.
Q3 2016 results
- iPhone sales: 40.4 million
- Revenue generated: $24 billion
- iPad sales:: 9.9 million
- Revenue generated: $4.8 billion
- Mac sales: 4.2 million
- Revenue generated: $5.2 billion
Q2 2016 results
- iPhone sales: 51.1 million
- Revenue generated: $32.8 billion
- iPad sales:: 10.2 million
- Revenue generated: $4.4 billion
- Mac sales: 4.0 million
- Revenue generated: $5.1 billion
The biggest growth driver was the 19 percent year-over-year increase for Apple’s services business. According to the Apple CFO Luca Maestri, the company was able to generate a total of $6 billion in revenue for App Store sales, making it a new record.
“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. We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.”
Tim Cook, CEO of Apple is looking optimistic over future iPhone and iPad sales, so we’ll see how well the company performs when the results for the fourth quarter of this year are introduced.