Apple Q2 2016 Results: $50.6 Billion Revenue, 51.2 Million iPhones, 10.3 Million iPads Sold

Apple has just published their financial results for Q2 2016, which covered the three months from January through March 2016. The company posted revenue of $50.6 billion and earnt a quarterly net profit of $10.5 billion. Through the quarter it sold 10.3 million iPads, 51.2 million iPhones, and 4 million Macs.

“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Tim Cook, Apple’s CEO. “We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices.”

The Company also announced that its Board of Directors has authorized an increase of $50 billion to the Company’s program to return capital to shareholders. Under the expanded program, Apple plans to spend a cumulative total of $250 billion of cash by the end of March 2018.

Apple’s Q2 2016 Guidance and the Year Ago Quarter (Q2 2015)

Apple had previously provided guidance for Q2 2016, expecting revenue to fall between $50 billion and $53 billion.

In the year ago quarter (Q2 2015), Apple earned $58 billion in revenue, and $13.6 billion in profit. During that quarter Apple sold 61.2 million iPhones, 12.6 million iPads, and 4.6 million Macs.

Notes from the Call

“A very busy and challenging quarter” – Tim Cook

Apple added a “huge” number of Android switchers and new Mac customers during the quarter.

Apple saw a higher upgrade cycle on the iPhone 6s than the iPhone 5s, but slower acceleration than last year’s iPhone 6 launch.

iPhone sales in India are up 56%.

This quarter’s Services revenue is the highest ever.

App Store revenue is up 35% and Apple Music has crossed 13 million paying customers.

Apple feels “good” about the success of their first subscription service.

“More expansion of Apple Pay is coming soon” – Cook

Apple expects seasonality of the Apple Watch to be similar to that of the iPod.

Apple expects to see the best “compare” for iPad revenue (revenue compared to previous quarter) in two years during the June quarter.

Apple has made 15 acquisitions in the past four quarters.

According to NPD data, iPad has 78% share of US market for tablets above $200.

Apple Watch is now available in 60 countries.

Apple now has $232.9 billion in cash (plus marketable securities), $208.9 billion of which is outside the US.

Revenue guidance for the next quarter is between $41 and $43 billion.

Tim Cook: India is where China was in 2006.

“We’ve developed a very large and profitable business in our Services” – Cook

Graphical Visualization

Below, we’ve compiled a graphical visualization of Apple’s Q2 2016 financial results.

Apple Q2 2016: On Twitter

Tim Cook: We learned a lot about Apple Watch in its first year.

Tough to disagree with that statement.

— Neil Cybart (@neilcybart) April 26, 2016

Tim Cook: We would buy large companies. We want great technology and people though. (And not just revenue and sales).

— Neil Cybart (@neilcybart) April 26, 2016

Tim: Apple’s first subscription business. – note he said FIRST

— Christina Warren (@film_girl) April 26, 2016

pic.twitter.com/UMqSJ69ZJa

— M.G. Siegler (@mgsiegler) April 26, 2016

Update on current Apple trading price. pic.twitter.com/MKTVmXlvyA

— Abdel Ibrahim (@abdophoto) April 26, 2016

A word is missing from Apple’s press release title today. pic.twitter.com/fv2Niabgd0

— Benjamin Mayo (@bzamayo) April 26, 2016

Tim Cook puts on a brave face as Apple reports lousy $10.5 billion profit. pic.twitter.com/xh0FsoUSjK

— Caitlin McGarry (@Caitlin_McGarry) April 26, 2016

Analyst consensus for Apple’s upcoming Q2 results: $2.00 EPS on $51.9B revenue, both year-over-year declines. https://t.co/qb0GHi7GtH

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

Here’s Tim Cook on iPhone sales declines in Q2 from the Q1 conference call. https://t.co/LLdht2Rxpa pic.twitter.com/KJnUhX0sg9

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