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Apple's Quarterly iPhone Sales Drop Once Again

The company posted $42.4 billion in revenue in the third quarter of FY 2016
Apple On The Street
July 26, 2016

As expected, another decline in iPhone sales marked Apple’s third quarter of fiscal year 2016.

In results released just a moment ago, Apple reported revenue of $42.4 billion and income of $7.8 billion for the period ending June 25. That’s compared to revenue of $49.6 billion and net income of $10.7 billion during the same time frame in 2015.

“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.”

“Our Services business grew 19 percent 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,” said Luca Maestri, Apple’s CFO. “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.”

For the just completed quarter, Apple sold 40.4 million iPhones, a significant drop from the 47.5 million units sold during the third quarter of 2015. Both iPad and Mac sales dropped compared to the year-ago time frame.

Starting at 2 p.m. PDT, Apple will hold a financial results conference call for analysts. Anyone can listen by heading here. You’ll need an iPhone, iPad, or iPod touch with Safari on iOS 7.0 or later, a Mac with Safari 6.0.5 or later on OS X v10.8.5 or later, or a PC with Microsoft Edge on Windows 10.

We’ll update you if Apple announces any big news during the audio webcast.