Disaster in Cupertino: Apple only made US$9bn last quarter

'Holy s**t, Tim!' - profits have slipped to a mere 'bonkers'

Shot of a new Macbook Pro

Apple once again saw revenues drop, as 45.5 million iPhone 7 sales were not enough to boost its fourth-quarter earnings.

CEO Tim Cook talked up the particularly strong performance of Apple's internet services while glossing over another quarter of falling revenues.

"Our strong September quarter results cap a very successful fiscal 2016 for Apple," Cook said.

"We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record."

For the 4th quarter of fiscal 2016 ending September 30th, the Cupertino maker of SOS logged:

  • Revenues of US$46.8bn, which were down 9 per cent from Q4 2015's $51.5bn.
  • Net income of $9bn on the quarter, down from $11bn in the year-ago quarter.
  • Non-GAAP earnings per share were $1.68, topping analyst predictions of $1.65.
  • iPhone sales of 45.5 million units led to revenues of $28.1bn, down 13 per cent on the year-ago quarter.
  • Mac sales topped out at 4.8 million units and $5.7bn in revenue, down 17 per cent.
  • iPads sold to the tune of 9.26 million units and $4.25bn revenues, flat from the year-ago quarter.
  • Services (including AppleCare and Apple Pay) brought revenues of $6.33bn, up 24 per cent from last year.

For the full fiscal 2016 year:

  • Revenues of $215.64bn were down from FY 2015's all-time high of $233.71bn.
  • Net income for the year was $45.7bn, down from $53.3bn last year.
  • Earnings per share of $8.35 were down from $9.28 in 2015.

The figures come just two days before Apple is expected to announce a refresh to its Mac line with a new edition of Macbook Pro laptop. The notoriously tight-lipped Apple may have accidentally leaked images of the notebook inside a recent system update. ®


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