Apple Third-Quarter Revenue, Income Dips, But Services Revenue Rises
July 27, 2016 at 4:31 AM (PT)
APPLE fiscal 2016 Q3 revenue fell 16% year-to-year to $42.4 billion and net income fell from $10.7 billion to $7.8 billion ($1.85 to $1.42 per diluted share). The drop was attributed to slower iPHONE sales but the earnings beat WALL STREET estimates; the company's Services segment rose 19% to $5.976 billion.
“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said CEO TIM COOK. “We had a very successful launch of iPHONE SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in JUNE.”
“Our Services business grew 19% year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said CFO LUCA MAESTRI. “We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.”
The company's board of directors also declared a cash dividend of $.57 per share, payable on AUGUST 11th to shareholders of record as of AUGUST 8th.