Apple Q3 2016: 40.4 Million iPhones Sold, $42.4 Billion in Revenue

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All eyes were on Apple today: will the company meet Wall Street analyst expectations? How about its own guidance for the quarter that ended in June? The consensus among analysts was that Apple will report a second consecutive decline in iPhone sales, after a “weak” second fiscal quarter during which the company sold 51.2 million handsets.

And the numbers are in: Apple reported the sale of 40.4 million iPhones — down 15% year-over-year, and a revenue of $42.4 billion — down 27% year-over year. Sales generated net a profit of $7.8 billion, the earnings release states.

Apple’s third fiscal quarter by device sales:
— 40.4 million iPhones
— 9.95 million iPads
— 4.2 million Mac computers.

“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 Tim Cook, Apple’s CEO. “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.”

Apple provided guidance of between $41 billion and $43 billion in revenue, a forecast which is up to 18% lower than the $49.6 billion in revenue reported the same period a year prior. Wall Street analysts expect the company to report revenue in the area of $42.1 billion. BMO analyst Tim Long expected Apple to report the sale of 42 million iPhones.

Apple’s guidance for its fiscal 2016 fourth quarter:
• revenue between $45.5 billion and $47.5 billion
• gross margin between 37.5% and 38%
• operating expenses between $6.05 billion and $6.15 billion