Apple suffers in fourth quarter 2016


iPhone 6S has failed to make much of an impact, but things looking up for next quarter

Apple has announced poor financial results for its fiscal 2016 fourth quarter ended 24 September 2016 on a 9% sales reduction in the quarter as the iPhone 6S failed to make much of an impact with consumers.

Sales for the quarter slumped by 8% to $215.6 billion, according to The FT, which stated that the company sold 45.5 million iPhone’s in the three months to 24 September, down 5% on the same period last year.

The company posted its first revenue decline in 10 years, with quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share, down 19% on revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share, in the same quarter last year.

Gross margin was 38% compared to 39.9% in the same period 2015, with international sales accounting for 62% of the quarter’s revenue.
Apple is providing the following guidance for its fiscal first quarter that includes the December Christmas shopping period: revenue between $76 billion and $78 billion; gross margin between 38% and 38.5%; operating expenses between $6.9 billion and $7 billion; other income/(expense) of $400 million; tax rate of 26%.


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