Apple Reports Largest-ever Profits in Q1 2016

Apple CFO Luca Maestri said: “Our record sales and strong margins drove all-time records for net income and EPS in spite of a very hard macroeconomic environment”, said Luca Maestri, Apple’s CFO.

During the fiscal first quarter, revenue climbed 1.7% year-on-year to $75.87 billion.

Tim Cook, the CEO of Apple was more focused in the positive news saying the Apple team delivered its biggest ever quarter, thanks to the innovative products and record sales of its iPhone, Apple TV and Apple Watch. This includes iPhone, iPad, Mac, Apple TV, Apple Watch, and iPod Touch devices that have been engaged with Apple services within the previous 90 days. “We do think that iPhone units will decline”, said Cook of the next quarter.

Analysts had expected revenue of US$76.54bn, prompting one to say the overall performance was slightly better than expected.

The iPhone remains the most sold of Apple product.

Apple’s installed base of hardware has grown 25% year over year, driving the company to 1 billion active devices for the first time.

Apple said earnings for another quarter will be between $50bn (GBP 34bn; Euro 46bn) and $53bn, below the $58bn it reported for the exact same period a year ago.

In the same quarter, Apple reported revenue of $75.9 billion, up from the record quarterly revenue of $74.6 billion it posted in Q1 of 2015.

Apple once again declined to disclose sales figures for the Apple Watch, leaving analysts to speculate just how successful the gadget is.

The news was preceded by weeks of dark predictions, with media reports claiming Apple had cut manufacturing orders from the companies that build the iPhone because inventory of the smartphone was backing up in retail channels.

Apple Inc. has estimated that its quarterly sales will drop for the first time since 2003. It earned over $6 billion from services like the App store, iTunes, Apple Music, Apple Care and so on. Demand for smartphones in China, a key growing market for Apple, has plunged, too.

Avi Greengart at the research firm Current Analysis said things did not appear that bad for the world’s biggest company by market value.

Greater China is Apple’s second highest revenue region, ahead of Europe, which provided $17.9 billion in revenue.