Apple’s shares dipped nearly four percent today after the iPhone maker posted its first annual revenue decline in a decade-and–a-half and failed to meet Wall Street’s expectations.
What would be a stellar quarter for most companies was nothing to get excited for Apple: a quarterly revenue of $46.9 billion and quarterly net income of $9 billion, or $1.67 per diluted share. That compares to revenue of $51.5 billion and net income of $11.1 billion, or $1.96 per diluted share, in the year-ago quarter.
Despite the drop, CEO Tim Cook called the quarter “strong” and referenced the demand for the company’s newly-released iPhone 7 and iPhone 7 Plus.
Apple chief financial officer Luca Maestri, during a conference call with analysts, said global demand for the iPhone 7 and 7 Plus has “significantly outpaced supply, particularly on iPhone 7 Plus, and we’re working very hard to get the new iPhones into the hands of our customers as quickly as possible.”
“We experienced strong iPhone growth in many markets around the world, including Canada, Latin America, Western Europe, Central and Eastern Europe, the Middle East, India and South Asia,” Maestri added. “iPhone sales in Greater China declined during the quarter, but the initial customer response to iPhone 7 and 7 Plus gives us confidence that our December quarter performance in China will be significantly better on a year-over-year basis than our September quarter results, even as we lap the all-time record period from a year ago.”
Maestri’s comments made Wall Street happy.
“We take the company’s multiple references to iPhone 7 plus demand likely outstripping supply in (December quarter) as affirmation of the near-term lift to the iPhone business,” Barclays analyst Mark Moskowitz wrote in a note.
Apple also had a record-setting quarter for Services, with revenue growth jumping 24 percent to hit $6.3 billion. Apple Music revenue was up 22 percent while App Store revenue spiked 43 percent.
Apple is predicting revenue between $76 billion and $78 billion for its fiscal 2017 first quarter.
Jennifer Cowan is the Managing Editor for SiteProNews.
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