Apple Q1 2016 Revenue Sets New Record Amidst Massive Growth Slowdown

Posted: Jan 27 2016, 2:51am CST | by , Updated: Jan 27 2016, 10:49pm CST, in News | Apple

 
Apple Q1 2016 Revenue Sets New Record Amidst Massive Growth Slowdown
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Apple's revenue in the Holiday quarter was $75.9 billion. $1.3 billion more than a year ago.

Apple still managed to set a new revenue record amidst the expected massive growth slow down. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share.

These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

The numbers did not surprise investors. The big issue is though how Apple continues now that growth has slowed down dramatically. Apple's revenue grew 30% in Q1 2015 from the previous year. Now the growth is in single digits. The APPL stock dropped only 2.57% in after hours trading. Investors seem to have a wait and see attitude.

Apple needs to find new ways to grow. An Apple car is one option. Other options are major acquisitions to add revenue. Apple sits on a giant mountain of cash and can afford to buy large companies with big revenue streams. Apple has though not done that in the past. Their acquisitions have always been product motivated.

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

Apple is providing the following guidance for its fiscal 2016 second quarter:

  • revenue between $50 billion and $53 billion
  • gross margin between 39 percent and 39.5 percent
  • operating expenses between $6 billion and $6.1 billion
  • other income/(expense) of $325 million
  • tax rate of 25.5 percent

Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on February 11, 2016, to shareholders of record as of the close of business on February 8, 2016.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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