With a 17.9 billion profit for Q1 2017, Apple has returned to its profit-making days. The current announcement corresponds with the fourth calendar quarter of 2016. The figures are from the beginning of October to the end of December 2016.
For this particular period, Apple earned a revenue of $78.4 billion and net quarterly profit of $17.9 billion, which comes out to be $ 3.36 per diluted share. Compared to this, Apple’s earned revenue was $ 75.9 billion for the same period in 2015. The profit in 2015 was $18.4 billion, so, despite rising sales and a better revenue, profit has a slightly come down. This can be attributed to the declining iPad sales and the ongoing problems in China.
On the brighter side, the iPhones sold a few millions more and the revenue growth was up by 4.7% compared to the previous year.
In terms of revenue and earnings per share, this has been one of the best periods for Apple due to a strong sale of iPhones, Apple Watch and even a better performance from the various Services the company has launched.
During the same period Apple sold 78.3 million iPhones. Even the sale of Mac computers increased from 5.3 million units in 2015 to 5.4 million units in 2016. The iPads on the other hand, have continued with their decline. In 2015 Apple sold 16.5 million iPads but in 2016 the company sold 13.1 million iPads.
According to Apple CEO Tim Cook:
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. 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.
All Apple products have been selling well except for the iPad. Of course the battery problems with Samsung Galaxy Note 7 may have also contributed to more sales for Apple. A big chunk of people switched to iPhones from Samsung Galaxy Note 7. A lot more didn’t go for a Samsung phone because the Korean company couldn’t make out why its flagship smartphones were catching fire. The sale of iPhones is very crucial for Apple because iPhone revenue is nearly 70% of Apple’s total earnings.
With these earnings Apple has left Samsung behind and has become the world’s top smartphone seller.
The increased sale of Mac computers has surprised analysts because everybody has been predicting that desktop computers are on the decline. The revenue made by Mac computers is up by around $500 million for the estimated quarter. It also shows that in the near future if Apple releases new computers and laptops, there are better prospects for the devices. With the advent of iPads and other tablets people had started predicting that PCs and laptops will be rendered useless but I have always believed that the things that you can do on your PCs and laptops, you cannot do on your iPad or any other tablet.
Apple is gradually moving into services too. Services like iCloud, Apple music, the iTunes Store and the App Store have experienced an increase of $1 billion in profits, growing 18.3% year-over-year.
Apple is also aggressively entering emerging markets like India. If the negotiations with the Indian government succeed, it may further boost Apple sales.