Apple has published its latest financial results, for the third quarter of its 2016 fiscal year (Q3 2016).
It follows last quarter's less-than-pleasing results, in which the company reported sales declines for all of its major product ranges, including - for the first time - its iPhone range. The news this quarter paints a similarly uncomfortable picture for the company - but despite further sales declines, it still beat Wall Street expectations.
Apple reported revenue for Q3 of $42.4 billion (GAAP), down 14.5% year-over-year (YoY), but that narrowly beat expectations of closer to $42 billion. Net income fell more sharply, by 27% YoY to $7.8 billion, compared with $10.7 billion during the same quarter a year ago. EPS was also down by 23%, dropping to $1.42, but that too was above expectations of $1.36.
Here's the breakdown for the company's main product lines:
- iPhone: 40.4 million sold, down 14.9% YoY
- iPad: 9.95 million sold, down 8.7%
- Mac: 4.25 million sold, down 11.5%
Apple didn't reveal details of its Watch sales, but according to the most recent figures from independent industry analysts IDC, shipments of the Apple Watch fell 55% year-over-year.
None of this is entirely surprising news; in December, analysts predicted a tough year ahead for the company, particularly given the anticipated slowdown in the smartphone market, and falling demand for the most costly devices, amid growing availability of more powerful handsets at more affordable prices. That's obviously a big problem for a company that makes so much of its money from profits on iPhone sales.
Apple CEO Tim Cook put a brave face on today's results, celebrating the "very successful launch of iPhone SE". Indeed, the latest figures from Kantar Worldpanel ComTech recently noted that the SE was among the top ten smartphones sold in major markets including Great Britain, France, China and the United States during the three months ending in May 2015.
And it wasn't all bad news for the company by any means, with 19% YoY growth for its Services business, and record App Store revenue.
Apple is forecasting revenue for its fiscal fourth quarter of between $45.5 billion and $47.5 billion.