Skip to main content

Apple announces record quarter, Q1 2016 revenue of $75.9b: 74.8m iPhones, 16.1m iPads, 5.3m Macs

Apple CEO TIm Cook iPad Pro

It’s earnings day for Apple and the company has just reported their official numbers for revenue, profit, and products sold during the holiday quarter. Remember that this quarter includes the bulk of iPhone 6s and 6s Plus sales, all iPad Pro and related accessory sales, Apple TV 4 sales, plus traffic from the busy holiday shopping season.

With that in mind, Apple reported $75.9b in revenue, $18.4b in profit, 74.8m iPhones sold, 16.1m iPads sold, and 5.3m Macs sold. Although the October through December period was probably a stacked quarter for Apple Watches sales, the company doesn’t break out category sales for that product for “competitive” reasons.

That compares to $51.5 billion in revenue, $11.1 billion in profit, 48m iPhones, 9.8m iPads, and 5.7m Macs reported in the previous quarter. During the same holiday quarter a year prior, Apple reported $74.6b in revenue, $18 billion in profit, 74.4m iPhones, 21.4m iPads, and 5.5m Macs for comparison. Analysts were predicting around $76.6b in revenue, 75m iPhones, 17.3m iPads, and 5.8m Macs.

Tim Cook had this to say:

“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.”

Full press release after the break, and stick around for our earnings call live blog at the top of the hour:

Apple Reports Record First Quarter Results

iPhone, Apple Watch, Services & Apple TV Drive All-time Record Revenue

Results Produce Record Quarterly Profit of $18.4 Billion

CUPERTINO, California — January 26, 2016 — Apple® today announced financial results for its fiscal 2016 first quarter ended December 26, 2015. 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.

“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.”

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Luca Maestri, Apple’s CFO. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”

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.

Apple will provide live streaming of its Q1 2016 financial results conference call beginning at 2:00 p.m. PST on January 26, 2016 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.

Q1’16 Earnings Supplemental Material

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 26, 2015, and its Form 10-Q for the fiscal quarter ended December 26, 2015 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, OS X, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contact:
Kristin Huguet
Apple
khuguet@apple.com
(408) 974-2414

Investor Relations Contacts:
Nancy Paxton
Apple
paxton1@apple.com
(408) 974-5420

Joan Hoover
Apple
hoover1@apple.com
(408) 974-4570

Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

AAPL before earnings hit:

AAPL

And shortly after the earnings report hit:

AAPL after hours

FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

  1. viciosodiego - 8 years ago

    Take it, analysts.
    Fucking take it.
    ha

  2. chrisl84 - 8 years ago

    Woohoo, profits are up the same percentage as the rate of inflation, that will get investors excited. #firsttrilliondollarcompany

    • lsobrado - 8 years ago

      nope. they failed to meet sales targets even as they had been lowered.

      • chrisl84 - 8 years ago

        Oh I know, I was being sarcastic.

      • yojimbo007 - 8 years ago

        Whos sales target..
        And … Nope they did not….

    • yojimbo007 - 8 years ago

      You are completely misunderstanding the results… And not comparing apples to apples….
      You have to take in the account the currancy headwinds and price hikes into the consideration…among many other short term economic headwinds
      you , like most out there obviously did not listen to the conference call. ..

      Apple results were phenomenal given the global environment.

  3. viciosodiego - 8 years ago

    Damn.
    I think we underestimate apple a bit too much.
    Don’t we?
    Who expected that iPhone sales would be so tremendous?
    Especially with an S model?

    • chrisl84 - 8 years ago

      I think you are reading that wrong….its not 74.7 million iPhone 6S’s, its all together….add in that India just set a sales record for 300 thousand additional 5S models from last year and you see that is why iPhones went up 0.3 Million units…..

      • tonywmd23 - 8 years ago

        But considering the main seller this year is an S model, it’s still pretty strong. It’s more than adequate to indicate that customers’ enthusiasm for iPhones are not descending, not a bit. With a complete redesign for iPhone 7, Apple’s bound to outsell this year again. The Apple empire is yet to collapse, not even freaking close.

      • chrisl84 - 8 years ago

        Missed on Revenue, Missed on iPads, missed on iPhones….that aint promising. Every year S or not will see an increase, a 300K bump aint nothing to brag about when they rest of your devices are dropping like flies. But whatever, yaaay one product went up 1%

  4. My purchase is counted in one of those millions of iPhones. Yaaay.

  5. lsobrado - 8 years ago

    so basically a record drop for the ipad, smashing past 25% drop even as the ipad pro, the alleged savior fizzed out. China still masking the drop elsewhere on the iphone. Mac is going nowhere as usual, and watch? did anybody even care?

    • chrisl84 - 8 years ago

      Yeah the drop in iPads is staggering, add in the Macs are down, a tiny bump in iPhone isnt going to cut it. They are going to need Services to really take off.

  6. viciosodiego - 8 years ago

    Macs are down, iPads are up surprisingly.

    • lsobrado - 8 years ago

      except macs are down ipads are down. :)

  7. applegetridofsimandjack - 8 years ago

    Android botgoats committing suicide en masse.

  8. earz6280 - 8 years ago

    Most consumers keep there iPhone for 2 years. I usually do that. Last year I did but the 6s plus. This year Apple needs to put FaceTime in their Apple Watch and make the device a tad bigger. The whole rumor about them making there own cellular network is false. Also, they will need to strike a deal with some TV provider to provide ala carte channels via some sort of app. Also, it’s time the iPad Air get renamed to something other that the iPad Air 3. No one cares about minis or whatever. It’s real simple to help Apple innovate. They just need to hire a nobody, an outsider, an actual consumer. The could easily put 8k in the next iPhone but they won’t. What Apple does is just take what other companies are doing and make things perfect. They have to move on from that way of thinking. Anyways at least we know that FaceTime will now have group chat with up to six people and that’s a big plus. Yeah I know hangouts does that, but Apples version will work flawlessly.

    • taoprophet420 - 8 years ago

      rumor is the Apple Watch still will get a minor revision with FaceTime Camera in March. In the rumor 9to% copied they left out the updated information that they are rumors from insiders Apple still plans a FaceTime update for the iPhone

  9. viciosodiego - 8 years ago

    iPads are up compared to the last quarter, at least.

  10. viciosodiego - 8 years ago

    I think the iPhone 5SE is going to keep sales up until the iPhone 7.
    Drops in iPads are expected, because no one replaces their iPad every 1 to 2 years.
    using iPad 2 here still.
    Apple needs to Focus on the international market if they want iPhones to keep growing.

  11. taoprophet420 - 8 years ago

    iPad sales are not that surprising considering there was no new 9.7′ model. Apples plan was to hold off on the 9.7′ model and do more enhanced update of it then normal in the spring.

    The upgrade cycle of an iPad is somewhere between what a smartphone is and a laptop. Most people will probably be upgrading every 3-4 years. They doubt have the same resale value as an iPhone so it makes updating them as frequently as an iPhone more costly.

    Apple needs to focus on eduction and enterprise more to halt the eroding sales number. Soon the numbers will stop dropping based on the upgrade cycle will stay steady since now people have got their first or 2nd iPad and its not a keep up with the Jones thing anymore.

  12. taoprophet420 - 8 years ago

    I don’t see why investors get so concerned about sales numbers. The number that matters is Apple still continues tremendous revenue. Look at the global revenue for Apple compare to other mobile device companies.

  13. Charlypollo - 8 years ago

    Most innovative products? A big tablet with pressure sensitive stylus? A phone with pressure sensor? An smartwatch with pressure sensitive screen? I think that they need to expand their vocabulary… Or maybe just take their heads out of their buttocks.

  14. Kunal Barchha - 8 years ago

    You have linked the wrong post –

    ‘That compares to $51.5 billion in revenue, $11.1 billion in profit, 48m iPhones, 9.8m iPads, and 5.7m Macs reported in the previous quarter (Correct link). During the same holiday quarter a year prior (Same link needs to be corrected ),’

  15. chrisl84 - 8 years ago

    Might want to update that after earning report afterhours stock price, lol. Nice try making it look like the stock went up 9to5 #itswaywaywaydown

  16. compnetspec - 8 years ago

    Apple with its monopoly is fucking with investors. Pump your money into this sinking business strategy and you will see nothing after devaluation, split and more bullshit they pulling up on investors. I already lost big$ on Apple. Don’t expect Your ROI soon. If you hold on to your stocks next 5 years…..but what will be the real value of your profit if everything will cost 40% more

Author

Avatar for Zac Hall Zac Hall

Zac covers Apple news, hosts the 9to5Mac Happy Hour podcast, and created SpaceExplored.com.