Another decline was experienced on June 27 to $92.04, but Apple’s share are now once again over $100 thanks to what the company calls strong performance during the third quarter.
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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).
A drop in iPhone sales at the beginning of 2016 triggered that fall and while the latest figures were still down on the same period previous year, Apple performed better than anticipated to report net income of 7.8 billion United States dollars (£5.9bn). Those services earned almost $6 billion in revenue.
The iPhone 7 is set to launch around September 12th, according to reports. Despite the drop from last year’s results, Q3 2016 shows results near the top end of their estimates.
The company’s total revenue dropped 14.6 per cent in the third-quarter ended June 25, also declining for the second quarter in a row.
The business model allows Apple to keep 30 percent of sales from its online App Store passing on 70 percent to the app developer. The drop in iPhone sales is though a concern.
Lastly, the company managed to sell 4.25 million Macs in Q3, which too marks a 11.5 percent decrease from previous year, when it sold 4.8 million units but a marginal growth from the last quarter when it had sold 4 million Macs. Apple still does not disclose Apple Watch shipments, reporting only revenue, and even then it is combined with revenue from other products, which includes Apple TV, iPod, Beats headphones, and branded accessories. The services business is now the company’s second largest, after the iPhone, ahead of gadgets such as the iPad and Mac. But it will undoubtedly promote the App Store.
Sales of iPhones account for about two-thirds of the total sales of the world’s most valuable publicly traded company.
Despite falls across the board, the market reacted positively to the results because they had expected worse figures, and pushed APPL shares up 6.81 percent to $103.25 in after-hours trading. This is followed by Europe ($9.64 billion), Greater China ($8.85 billion), Japan ($3.53 billion), and the rest of Asia Pacific ($2.34 billion).
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The company sold 40.4 million of the devices in the period, down 15% from the same quarter a year ago but still more than a market consensus of 40.02 million.
