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Double whammy for Apple as iPhone sales and quarterly revenue drop

Apple today announced its financial report for Q3 2016, revealing a drop in revenue and falling iPhone sales compared to both the previous quarter and this time last year.

The Company posted quarterly revenue of $42.4 billion and a net income of $7.8 billion, with the bulk (nearly $18 billion) coming from the Americas. This revenue is compared to $50.5 billion in Q2 2016 and $49.6 billion in Q3 2015, drops of 16 per cent and 15 per cent respectively.

The iPhone sales slump is also continuing, with 40,399 units sold in Q3 2016 compared to 51,193 in the previous quarter and 47,535 this time last year. iPad sales remained fairly constant with 9,950 units sold and Mac sales are actually up 5 per cent from the previous quarter.

As usual Apple CEO Tim Cook did his best to put a positive spin on things, saying: “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.”

Luca Maestri, Apple’s CFO, focused on the services side of things: “Our Services business grew 19 per cent 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.

"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.”

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