Apple posted a net profit of $18.4 billion for the quarter ended December 26, 2015 (Q1 FY16) and the company generated revenues of $75.9 billion. However, the company provided a lower revenue guidance of $50-53 billion for the next quarter amid slowing device sales. Here are some of the key takeaways from Apple’s call with investors:
iPhone sales up 76% in India
Apple’s chief financial officer Luca Maestri said that iPhones sales were up 76% in the quarter. CEO Tim Cook added that the India revenues were up 38%. In constant current terms, the revenue growth was 48%. Cook also said that the company is increasingly putting more effort in India operations.
“It’s a very rapidly expanding country. And I think the government there is very interested economic reforms and so forth that I think all speak to a really good business environment for the future,” Cook said.
Earlier in November 2015, Apple India crossed the $1 billion sales mark for FY15. The registrar of companies filings showed that Apple India posted a 44% increase in sales to Rs 6,472.89 crore from Rs 4,500.35 crore and net profit doubled to Rs 242.85 crore from Rs 119.48 crore.
The Economic Times reported that Apple India reshuffled its top management in India. Sanjay Kaul, who earlier headed the division for gadgets such as iPhone and iPad, will lead the general trade vertical that covers small retail outlets that stock different brands. Satya D, who was heading the Mac computer division, will head large modern retail and ecommerce vertical.
iPhones sales slowing
Apple’s iPhones sales were at 74.8 million for the quarter. Apple sold 74.5 million iPhones in the same quarter last year representing a growth of 1%. In comparison, the growth in iPhone sales in the same quarter last year was 46.1%. It’s also worth noting that the December quarter is traditionally the strongest quarter for device sales, since it includes the holiday season.
Maestri added that the company has increased its prices for devices in international markets due to unfavourable foreign exchange and a slowdown in the macroeconomic environment. “One of the things that we’ve done to respond to the foreign exchange situation has been to increase the price of some of our products in certain international markets…. But inevitably over time, higher prices affect demand and so we’re capturing that in our guidance, Maestri said.
1 billion active devices
Cook mentioned that the there are now 1 billion active Apple devices. The company defines an active device as one that has been engaged with Apple’s services within the past 90 days. “We have built a huge installed base around four platforms, iOS, Mac OS, watchOS and tvOS. We have tremendously satisfied and loyal customers who are engaged with our services at a fast growing rate. All of this provides us with an unparalleled foundation for the future of Apple business,” Maestri added.
Mac and iPad sales slowing
Apple reported sales of 5.3 million Macs compared to 5.5 million last year, a decline of 4%. The company sold 16.1 million iPads, compared to 21.4 million in the year ago quarter. This has been the seventh consecutive quarter of slowing sales in the iPad.
– Net profit stood at $18.4 billion compared to $18 billion in the same period last year.
– Revenues stood at$75.9 billion for the quarter, compared to $74.6 billion in the same quarter last year representing a growth of 1.46%.
– Asia-Pacific (excluding Japan and China) revenues were at $5.4 billion compared to $5.2 billion in the same quarter last year.