Top 3 Most Interesting Facts We've Learned from Apple's Q1 2016 Results
The web is abuzz with news about Apple’s record financial results for Q1 2016, the company’s fiscal 2016 first quarter that ended on December 26, 2015.
I don’t know about you, but going over a long list of numbers seems like a bore to me. So in that spirit, I am not going to dull you to sleep, I’m going to point out the top 3 things you need to take away from Apple’s quarterly financial results for Q1 2016.
1. Apple keeps on making a ton of money
All of Apple’s financial results have one thing in common: the word “record”. Every press release starts with the same phrasing: "Apple Reports Record X Quarter Results". Q1 2016 is no different.
Apple reported record financial results for Q1 2016, and better results compared to the year-ago quarter.
Apple reported record profits of $18.4 billion and record total quarterly revenue of $75.9 billion. Compared to Q1 2015, that’s a 400 million increase in profits and a 1.3 billion increase in total revenue. Quarter after quarter, year after year, Apple makes more and more money.
And in case you’re wondering, Apple has so far amassed a huge cash pile of more than $200 billion. That’s the most cash any company has ever had on its balance sheet. It’s enough to buy more than 11 million pounds of gold (or more than 5 million kilos of gold, if you prefer the metric system). Apple could give everyone in the US a check for $500 and still have hundreds of millions to spare.
How did Apple amass such a huge cash hoard? The answer is simple: Apple is not afraid to charge a lot for its products and, in some cases, it’s not beneath ripping you off.
2. For the first time ever, iPhone sales (and revenue) will decline
Apple sold 74.77 million iPhones in Q1 2016, slightly more than it did in the year-ago quarter. That’ been a constant trend for iPhone sales; they’ve been going up ever since the smartphone was released back in 2007. From quarter to quarter, Apple sold more and more iPhones. That’s about to change.
During the company’s financial earning conference call, Apple CEO Tim Cook said that, for the first time ever, iPhone sales will decline in the coming quarter, Q2 2016. For this prediction to come true, Apple has to sell less than 61.17 million iPhones (that’s how many it sold in Q2 2015).
Since 2003, Apple has posted over 50 quarters of year-over-year revenue growth. That’s about to change too.
Apple expects to make between $50 and $53 billion in Q2 2016. Seeing that Apple reported $58 billion in total revenue in Q2 2015, it would be the first year-over-year drop in revenue in over a decade (since 2003 to be more precise).
3. There are 1 billion active Apple devices out there
Each quarter, Apple sells millions of devices. As mentioned above, it sold more than 74 million iPhones this quarter alone. It also sold 5.3 million Macs, and 16.1 million iPads in Q1 2016. Apple also sold a lot of Apple Watches and Apple TVs, but it did not provide say how many.
What it did say is that its active installed base of devices has reached 1 billion, with a 25% year-over-year increase in active devices.
“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.”
Please note that the 1 billion active devices figure is based on the number of iPhone, iPad, Mac, iPod touch, Apple TV and Apple Watch devices that have been engaged with the company's services within the past 90 days.
What about active Android devices? Well, Google crossed the 1 billion milestone back in 2014. And during Google’s Nexus event back in 2015, CEO Sundar Pichai announced that the number of active Android devices has topped 1.4 billion.
I don’t know about you, but going over a long list of numbers seems like a bore to me. So in that spirit, I am not going to dull you to sleep, I’m going to point out the top 3 things you need to take away from Apple’s quarterly financial results for Q1 2016.
1. Apple keeps on making a ton of money
All of Apple’s financial results have one thing in common: the word “record”. Every press release starts with the same phrasing: "Apple Reports Record X Quarter Results". Q1 2016 is no different.
Apple reported record financial results for Q1 2016, and better results compared to the year-ago quarter.
Apple reported record profits of $18.4 billion and record total quarterly revenue of $75.9 billion. Compared to Q1 2015, that’s a 400 million increase in profits and a 1.3 billion increase in total revenue. Quarter after quarter, year after year, Apple makes more and more money.
And in case you’re wondering, Apple has so far amassed a huge cash pile of more than $200 billion. That’s the most cash any company has ever had on its balance sheet. It’s enough to buy more than 11 million pounds of gold (or more than 5 million kilos of gold, if you prefer the metric system). Apple could give everyone in the US a check for $500 and still have hundreds of millions to spare.
How did Apple amass such a huge cash hoard? The answer is simple: Apple is not afraid to charge a lot for its products and, in some cases, it’s not beneath ripping you off.
2. For the first time ever, iPhone sales (and revenue) will decline
Apple sold 74.77 million iPhones in Q1 2016, slightly more than it did in the year-ago quarter. That’ been a constant trend for iPhone sales; they’ve been going up ever since the smartphone was released back in 2007. From quarter to quarter, Apple sold more and more iPhones. That’s about to change.
During the company’s financial earning conference call, Apple CEO Tim Cook said that, for the first time ever, iPhone sales will decline in the coming quarter, Q2 2016. For this prediction to come true, Apple has to sell less than 61.17 million iPhones (that’s how many it sold in Q2 2015).
Since 2003, Apple has posted over 50 quarters of year-over-year revenue growth. That’s about to change too.
Apple expects to make between $50 and $53 billion in Q2 2016. Seeing that Apple reported $58 billion in total revenue in Q2 2015, it would be the first year-over-year drop in revenue in over a decade (since 2003 to be more precise).
3. There are 1 billion active Apple devices out there
Each quarter, Apple sells millions of devices. As mentioned above, it sold more than 74 million iPhones this quarter alone. It also sold 5.3 million Macs, and 16.1 million iPads in Q1 2016. Apple also sold a lot of Apple Watches and Apple TVs, but it did not provide say how many.
What it did say is that its active installed base of devices has reached 1 billion, with a 25% year-over-year increase in active devices.
“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.”
Please note that the 1 billion active devices figure is based on the number of iPhone, iPad, Mac, iPod touch, Apple TV and Apple Watch devices that have been engaged with the company's services within the past 90 days.
What about active Android devices? Well, Google crossed the 1 billion milestone back in 2014. And during Google’s Nexus event back in 2015, CEO Sundar Pichai announced that the number of active Android devices has topped 1.4 billion.
