Apple’s revenue fell for the first time in 13 years
On April 26, 2016, Apple (AAPL) announced its fiscal 2Q16 results. Its revenue of $50.6 billion were lower than analysts’ consensus estimate of $51.5 billion. EPS (earnings per share) of $1.9 were lower than the $1.97 that analysts were expecting.
Apple’s EPS fell from $2.33 in fiscal 2Q15 to $1.9 in fiscal 2Q16.
Apple posted its first YoY fall in revenue since 2003
Apple’s net income was $10.5 billion on revenue of $50.6 billion in fiscal 2Q16. In comparison, Apple’s net income and revenue for fiscal 2Q15 were $13.6 billion and $58 billion, respectively. Apple had earlier projected revenue of $50 billion–$53 billion in its January 2016 guidance. Shares of the company fell by over 7% in after-hours trading.
“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Tim Cook, Apple’s CEO. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”
Apple posted its first YoY (year-over-year) quarterly revenue fall in 13 years, primarily driven by a slowing smartphone market in China (FXI).
It will be interesting to see the performances of Apple’s suppliers, including Qorvo (QRVO) and Skyworks Solutions (SWKS). Shares of these companies have spiraled downward since analysts projected lower iPhone sales.
The revenue of the recently launched iPhone SE was not included in the company’s fiscal 2Q16 results, as the product was shipped on March 31, 2016.
Apple accounts for 15.8% of the Technology Select Sector SPDR ETF (XLK).