The Californian-company Apple recently reported its financial results for its fiscal quarter that was concluded last December 31, 2016. The tech company posted record-breaking quarterly revenue, and an all-time record of quarterly earnings per diluted share, while international sales covered almost half of the company’s progress.
Apple’s CEO Tim Cook said “We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,” and “Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.” The tech giant’s quarterly revenue was at $78.4 billion, and quarterly earnings per diluted share were at $3.36, as opposed to last year’s revenue at $75.9 billion and earning per diluted share of $3.28.
iPhone Sales Back on Track
The company found solace in the sudden boom of iPhone sales numbers and trampling analysts’ expectations. iPhones’ profit were at $18 billion sending shares sky rocketing 3 percent just after-hours trading closes. Apple sold 78.29 million units of iPhones the in the recent fiscal quarter, a notable increase of last year’s 74.78 million units sold, and smashing analysts’ forecasts of 77.42 million.
This is a convincing win against its toughest competitor, Samsung Electronics, who sold 77.5 million smartphones in their last fiscal quarter. The first time Apple has overtaken Samsung on units sold after almost 4 years of android dominated market. Apple’s success in the recent quarter is heavily influenced by the tremendous iPhone sales; they are accounted for almost two-thirds of the company’s total revenue.
Apple’s CFO Luca Maestri said, “Our outstanding the business performance resulted in a new all-time record for earnings per share, and over $27 billion in operating cash flow,” and “We returned nearly $15 billion to investors through share repurchases and dividends during the quarter, bringing cumulative payments under our capital return program to over $200 billion.” Other statistics from the recent fiscal year are as follows, revenue is somewhere in between $51.5 billion and $53.5 billion, gross margin is at 38 and 39 percent, operating expenses were nearly at $6.6 billion, other income expenses at $400 million and the tax rate is at 26 percent.
Apple Continues Slump in China
Even with the upheaving of iPhone sales, Apple still loses 12 percent at $16.2 in Greater China compared to last years’ 14 percent increase. The Chinese smartphone market is dominated by local manufacturers and companies such as Oppo Electronics Corp. and Huawei Technologies Co. who offers a significant offering of handsets that are a lot cheaper and sophisticated as iPhones do.
According to Counterpoint Research’s analyst James Yan, the lack of visual upgrade and distinction between the iPhone 7 and the iPhone 6 is a viable argument for the continuous slump of the company in the region. Chinese consumers wouldn’t spend that much on a lackluster phone, “Chinese consumers now have many other options,” Apple falls to the fifth spot in the smartphone market share, just behind Xiaomi, while Oppo bags the first place and following it behind is its sister company Vivo.
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