Apple Q3 2016 Results: $42.4 Billion Revenue, 40 Million iPhones, 10 Million iPads Sold

Apple has just published their financial results for Q3 2016, which covered the three months from April to June 2015. The company posted revenue of $42.4 billion. The company sold 10 million iPads, 40 million iPhones, and 4 million Macs, earning a quarterly net profit of $7.8 billion.

“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.”

Estimates for Q3 2016 and the Year Ago Quarter (Q3 2015)

Apple’s guidance for Q3 2016 fell between $41 billion and $43 billion, with gross margin estimated to be between 37.5% and 38%.

In the year ago quarter (Q3 2015), Apple earned $49.6 billion in revenue, and $10.7 billion in profit. During that quarter Apple sold 47.5 million iPhones, 10.9 million iPads and 4.8 million Macs.

Apple Q3 2016 in Tweets

https://twitter.com/daiwaka/status/758050728720015361

Tim Cook on growth in R&D “there is quite a bit of investment in there for products and services that are not currently shipping” $AAPL

— Walter Piecyk (@WaltLightShed) July 26, 2016

$AAPL R&D/Revenue
2016 FQ3 6.0%
2016 YTD 4.4%
2015 3.5%
2014 3.3%
2013 2.6%
2012 2.2%

— Walter Piecyk (@WaltLightShed) July 26, 2016

https://twitter.com/BenedictEvans/status/758060086593855489

Cook: Didi investment was unusual (we don’t do these typically). We think there are some strategic things here.

…..PROJECT TITAN……

— Neil Cybart (@neilcybart) July 26, 2016

LM: Mac installed base is at an all-time high at the end of the June quarter.

— MacJournals.com (@macjournals) July 26, 2016

LM: Challenging PC sales overall, IDC estimating 4% year-over-year slowdown. Still, Mac gains high percentage of new customers.

— MacJournals.com (@macjournals) July 26, 2016

Luca: iPhone SE doesn’t appear to be cannibalizing higher ASP iPhone models.

— Neil Cybart (@neilcybart) July 26, 2016

https://twitter.com/BenedictEvans/status/758051598278930432

3/4 contactless payments in the US made with Apple Pay. $AAPL

— Christina Warren (@film_girl) July 26, 2016

https://twitter.com/BenedictEvans/status/758057286904389632

Wow. Apple isn’t slowing down with share buyback. Instead, they are doubling down.

— Neil Cybart (@neilcybart) July 26, 2016

https://twitter.com/BenBajarin/status/758039755971899392

https://twitter.com/tim/status/758058715387924480

Highest ever US corporate smartphone intent to buy iPhones: 75% $AAPL

— Daniel Eran Dilger (@DanielEran) July 26, 2016

https://twitter.com/LaurenGoode/status/758053064431374337

Graphical Visualization

Below, we’ve compiled a graphical visualization of Apple’s Q4 2015 financial results.