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Apple sales, profits fall for first time since 2001

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Apple sales, profits fall for first time since 2001

Falling iPhone sales have resulted in Apple recording its first drop in sales and profits since 2001.

The company reported overnight that it had revenue of US$215.6 billion for the year to 24 September, compared to US$233.7 billion for the previous financial year.

As far as profits went, the company made US$45.7 billion for the year to 24 September, a drop of 14%.

In the fourth quarter, Apple reported sales of US$46.9 billion compared to US$51.5 billion in the corresponding quarter of the previous financial year.

Nearly two-thirds of the sales came from countries other than the US.

In terms of profit, the company made US$9 billion in the fourth quarter, compared to US$11.1 billion in the corresponding quarter in the previous financial year.

Apple chief executive Tim Cook said: "Our strong September quarter results cap a very successful fiscal 2016 for Apple.

"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% to set another all-time record.”

Apple chief financial officer Luca Maestri said: “We are pleased to have generated US$16.1 billion in operating cash flow, a record for the September quarter.

“We also returned US$9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over US$186 billion of our capital return programme.”

The company provided the following guidance for its fiscal 2017 first quarter:

  • revenue between US$76 billion and US$78 billion;
  • gross margin between 38% and 38.5%;
  • operating expenses between US$6.9 billion and $7 billion;
  • other income/(expense) of US$400 million; and
  • tax rate of 26%.

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