Apple Records Profits Despite Slower iPhone Sales
The first quarter of 2016 has yet to close but yet Apple has already released figures for its first quarter. Do not get confused though, companies have different account or financial closing times in a year and for Apple their first quarter of 2016 closes on the 26th December of 2015. Which means that this is kind of a report of how they did in the fourth quarter of last year.
No matter though, in this report they actually posted profits while other manufacturers posted losses. Not only that they actually say that in this quarter they actually posted their highest quarterly profits this year. According to Apple’s own reports they posted a net income of US$18.4 billion (MYR77.111 billion) out of the US$75.9 billion (MYR318.083 billion) revenue posted for this quarter. These numbers clearly show a growth from last years same quarter from US$18 billion (MYR75.414 billion) profits from US$74.6 billion (MYR312.549 billion). CEO, Tim Cook admits though that they market is in a bad shape in the statement but is proud that Apple is still able to grow in these economic conditions.
The outlook for the next quarter is optimistic to say the least for Apple. They are expecting up to US$53 billion (MYR222.089 billion) in revenue in the first quarter of 2016, or rather Apple’s second 2016 quarter. Profits for this expected quarter will come in at almost 40% from the expected revenue and afer considering their expected US$6.1 billion in expense (MYR25.573 billion). With the next iPhone to be launched at the third quarter of 2016 though there could be a further drop in iPhone sales in the next few quarters. With the market conditions not showing any pick ups we are not expecting great numbers from their sales either.