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Apple’s iPhone Sales Fell in 3Q16, CEO Tim Cook Not Deterred

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Revenues of $42.4 billion in fiscal 3Q16

On July 26, 2016, technology (QQQ) heavyweight Apple (AAPL) announced its fiscal 3Q16 results and reported revenues of $42.4 billion and quarterly net income of $7.8 billion with EPS (earnings per share) of $1.42.

In comparison, Apple had announced revenues of $49.6 billion and net income of $10.7 billion with EPS of $1.85 in fiscal 3Q15. Revenues fell 14.5% YoY (year-over-year) driven by lower iPhone sales and a 33% decline in sales from Greater China.

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However, Apple CEO Tim Cook was optimistic with regards to consumer demand and stated, “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. 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.”

Analysts expected revenues of $42.03 billion

Analysts expected the firm to post revenues of $42.03 billion for the quarter, which ended in June 2016, with a low estimate of $41.16 billion and a high estimate of $43.29 billion.

Analysts expected Apple’s EPS (earnings per share) to be $1.39, with a high estimate of $1.52 and a low estimate of $1.23.

Apple’s revenues fell for the first time in 13 years in fiscal 2Q16 when the firm’s revenue of $50.6 billion was lower than the consensus analyst estimate of $51.5 billion.

Peers Western Digital (WDC), Seagate (STX), and Hewlett-Packard (HPQ) will be announcing their latest fiscal quarterly results on July 28, 2016, July 29, 2016, and August 17, 2016, respectively.

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