Apple Reports Quarterly Profit of $18.4 Billion, Sets New Record

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Apple Reports Quarterly Profit of $18.4 Billion, Sets New Record

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Another year another record quarterly earnings by Apple. The Cupertino-based giant announced their fiscal first quarter earnings ended December 26, 2015. A record quarterly revenue of $75.9 billion with a profit of $18.4 billion, the largest in history. This is a little over than the numbers Apple raked in the same quarter the year before, which was the largest ever recorded by a single public corporation then.

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

Tim Cook

Now that the earnings are in, Apple has provided their prediction for the second quarter, which is the first three months of 2016 for the company. It expects to generate between $50 billion to $53 billion in revenues which is down from $58 billion in revenues it booked for the same quarter last year.

“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Luca Maestri, Apple’s CFO. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”
The past few weeks, reports have been emerging that Apple suppliers have seen a decline on orders, but the earnings tell a different tale. This is partly due to the record-setting sales seen in China. As usual, the iPhones have been the major generators of revenue for the company, but now it also looks like Apple is earning well from its “services” and “other products”. The services consist of things like the app store, iCloud, AppleCare, and Apple Pay, which grew 26 percent year over year to $6.05 billion.
“Other products” includes the Apple Watch and Apple TV, grew its revenue 62 percent year-over-year, bringing in $4.3 billion this quarter.
What does the future look like now for Apple and what new product can become the next cash-cow for the giant is something we’ll just have to wait and see. If recent trend is any sign, then Apple could be making its entry into the virtual reality sector pretty soon.


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Sanket Vijay
When not indulging in reading or writing, Sanket fanboys over The Flash, Star Wars, Coldplay, and U2. And pizza, he loves his pizza. Follow him on Instagram for more.