Apple Reports Record First Quarter Revenues

Apple announced financial results for its fiscal 2016 first quarter ended December 26, 2015. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion. These results compare to revenue of $74.6 billion and net income of $18 billion, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

China generated $18.3 billion in revenue for Apple, up 14% from a year ago.

The company reported iPhone sales of 74,479,000 units in the quarter, about even with last year. Apple sold 16,122,000 iPads, which was down 25% from a year ago. Mac sales were 5,312,000 in the quarter, down 4% from last year. Apple did not break out sales of its Watch lineup.

“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.”

“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.”