Apple Profits: Company Posts Record Figures For Q1 2016
Apple kicked off 2015 by being named the world’s largest company. With the biggest market cap, the largest sales, the largest profits, and the largest assets of any company in the world (as of February 2015), Apple left its competitors in the dirt. The company had more than twice the market cap of its nearest technology rival, Google, and with Apple having a market value of almost $800 billion, even ExxonMobil, the world’s second largest listed company (including tech and non-tech organizations) with a market value of $377 billion, couldn’t compete. So with 2015 done and dusted, how did Apple close things out?
As it turns out, Apple had a remarkable end to 2015, as the company posted record figures for the first quarter of the 2016 financial year (the three months ending December 26, 2015). According to a press release from Apple, the company had a record quarterly revenue of $75.9 billion, with a net income of $18.4 billion, in comparison to the same quarter in the previous year which saw them make $74.6 billion with a net income of $18 billion. Apple also says that “international sales accounted for 66% of the quarter’s revenue.”
A huge contributing factor to Apple’s success in the quarter was of course its new iPhones. The iPhone 6S and 6S Plus set new iPhone sales records, despite many suggesting that the ‘S’ models of iPhones typically see less interest than the normal, S-less models. Moreover, Apple launched a daring new approach to the home entertainment market with the Apple TV, with the device’s latest generation being made for gaming. And that’s not to forget the Apple Watch, which debuted at the beginning of 2015 as the stylish hi-tech accessory and saw Apple seize 80% of the global smartwatch market.
In the release, Apple CEO Tim Cook adds that “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.” Meanwhile, Luca Maestri, Apple’s CFO, notes that “our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment.” Maestri also points out that “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.”
As for what the future holds for Apple, in the second quarter of the 2016 financial year, the company is expecting to make between $50 and 53 billion. Look even further forward though, and the company could soon be making money from a virtual/augmented reality headset if a recent, high profile hire is to be believed. An Apple car is on the horizon too, with the vehicle being one of the tech industry’s well-known ‘secrets’. We’ll keep you posted.
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