iWorld

Q4-16: Apple Services clocks 24 per cent growth, Other Products revenue falls

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/10/26/Tim-Cook_0.jpg?itok=uamo2Ska

BENGALURU:  Apple Inc (Apple) Services product recorded a 24.4 percent year-over-year (y-o-y) growth in revenue for the quarter ended 30 September 2016 (Q4-16, current quarter) amidst a 9 percent y-o-y fall in total revenues. Apple Services includes revenue from Internet Services, AppleCare, Apple Pay, licensing and other services.

Apple Services reported revenue of $6,325million for Q4-16 versus $5,086 million in the corresponding year ago quarter, while Apple Total revenue in Q4-16 was $46.852 million versus $51,101 million in Q4-15.

However, across sequential quarters, Apple Services revenue increased only 5.8 percent in Q4-16 from $5,976 million as against 10.6 percent growth in total revenue from $42,358 million during the same period.

Apple Services contribution to overall revenue grew to 13.5 percent in the current quarter from 9.9 percent in the corresponding year ago quarter, but was slightly lower than 14.1 percent in the immediate trailing quarter.

Apple’s “Other Products’, which include sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories saw a 22.1 percent y-o-y decline in revenue to $2,373 million in the current quarter from $3,048 million. Across sequential quarters (q-o-q), ‘Other Products’ recorded a 6.9 percent growth in Q4-16 from $2,219 million.

‘Other Products’ contribution to overall revenue declined to 5.1 percent in the current quarter from 5.9 percent in the corresponding year ago quarter and 5.2 percent in the immediate trailing quarter.

Major Products

Apple’s major Product is the iPhone which saw y-o-y declines of 5.3 percent and 12.6 percent in number of units sold and revenues respectively in Q4-16. iPhone sales revenue in the current quarter was $28,160 million (60.1 percent of total revenue) versus $32,209 million (62.5 percent of total revenue) in Q4-15. 40.513 million iPhones were sold in  the current quarter versus 48.046 million in the corresponding year ago quarter.

During sequential quarters, iPhone sales witnessed growth rates of 12.7 percent and 17.1 percent in number of units sold and revenues respectively in Q4-16. iPhone sales revenue in Q3-16 was $24,048 million from 40.399 million units.

Among Apple’s other well-known products, the iPad witnessed y-o-y and q-o-q declines in number of units sold and revenues, while the Apple Mac recorded q-o-q declines.

Geographical split

Apple’s segments are Americas, Europe, Greater China, Japan and Rest of Asia Pacific (APac), with the America’s contributing more than 42 percent in terms of revenue.

Revenue from the Americas declined 7.1 percent y-o-y to $20.229 million (43.2 percent of total revenues) from $21,773 million (42.3 percent of total revenues. Across sequential quarters, revenue from the Americas increased 12.6 percent in the current quarter from $17,963 million (42.4 percent of total revenues).

Revenue from the European segment grew 2.5 percent y-o-y and 12.4 percent q-o-q to $10,842 million (23.1 percent of total revenue) from $10,577 million (20.5 percent of total revenue) and from $9,643 million (22.8 percent of total revenue) respectively.

Revenue from the China segment declined 29.8 percent y-o-y and declined 0.7 percent q-o-q to $8,785 million (18.8 percent of total revenue) from $12,518 million (24.3 percent of total revenue) and from $8,848 million (20.9 percent of total revenue) respectively.

Revenue from the Japan segment grew 10.1 percent y-o-y and 22.5 percent q-o-q to $4,324 million (9.2 percent of total revenue) from $3,939 million (7.6 percent of total revenue) and from $3,529 million (8.3 percent of total revenue) respectively.

Revenue from the APac segment declined 1.2 percent y-o-, but grew 12.5 percent q-o-q to $2,672 million (5.7 percent of total revenue) from $2,704 million (5.3 percent of total revenue) and grew from $2,375 million (5.6 percent of total revenue) respectively.

Profits, Apple’s board declares dividend

Apple posted a 19 percent y-o-y decline in net income at $9,014 million (19.2 percent margin) for Q4-16 versus $11,124 million 21.6 percent margin). Earnings per diluted share declined to $1.68 in the current quarter from $1,96 in Q4-15.

Apple's board of directors has declared a cash dividend of $0.57 per share of the Company's common stock. The dividend is payable on November 10, 2016 to shareholders of record as of the close of business on November 7, 2016.

Company speak

"Our strong September quarter results cap a very successful fiscal 2016 for Apple," said apple CEO Tim Cook. "We're thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record."

"We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter," said Apple CFO Luca Maestri. "We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program," added Cook.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/13/voot.jpg?itok=YcbzFGgG
We want VOOT Kids to be the go-to destination for parents: Viacom18's Saugato Bhowmik

Viacom18, after establishing its main OTT service Voot, is now entering the digital space for kids with VOOT Kids. The subscription-based app targets the age group of two to eight year olds. VOOT Kids, which is priced at Rs 99 per month and Rs 799 per year, houses content in seven different...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/disney_0.jpg?itok=cfs2yTZl
Indians await eagerly as Disney+ launches in foreign markets

Mumbai: Walt Disney’s OTT service Disney+ launched in the US, Canada and Netherlands today, even as there is no clarity on when its unmatchable content library, offering 500 films and 7,500 episodes of television, will be made available to Indian viewers through its Hotstar platform.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/disney.jpg?itok=fnR3jfdm
Walt Disney OTT platform Disney+ goes on-air in US, Canada, and the Netherlands

Mumbai: Disney+ has launched today in the US, Canada, and the Netherlands, with The Walt Disney Company (TWDC) CEO Robert Iger declaring it a “historic moment” for the company. The service arrives with nearly 500 films and 7,500 episodes of television from brands such as Disney, Pixar, Marvel, Star...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/avaneger.jpg?itok=jYzw_8iA
Avengers: Endgame to stream on Hotstar Premium, Hotstar VIP from Nov 13

MUMBAI: Avengers assemble! as the biggest Hollywood movie ever – Avengers: Endgame – comes to Hotstar VIP and Hotstar Premium – home of the most powerful superheroes! The movie comes to India with its global digital release, barely six months after its theatrical release giving millions a chance to...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/eros.jpg?itok=Ad5Wrjjw
Eros International Plc to release Andhadhun in Japan on november 15

MUMBAI: – Eros International Plc, a Global Indian Entertainment Company, has announced the planned theatrical release of Andhadhun in cinemas in Japan on November 15th. Andhadhun is an Indian black comedy crime thriller film directed by Sriram Raghavan. The engaging thriller starring Tabu,...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/drive.jpg?itok=fp6T2Ukv
Big Boy Toyz partner with Dharmatic Entertainment for Netflix

MUMBAI: Dharmatic Entertainment and Big Boy Toyz, Delhi’s most trusted pre-owned luxury cars hub, partnered for former’s action film on Netflix. The film, Drive, showcased some of the best keeps of Bog Boy Toyz that were used in many high-speed chases and over-the-top stunts.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/shemaroo.jpg?itok=3DCH3Y_W
MX Player announces strategic in-app partnership with ShemarooMe

MUMBAI: Since their launch in February 2019, MX Player – India’s leading entertainment streaming platform has emerged as the go-to entertainment destination with their offering of free multi-genre MX originals, vast library of 1,00,000 + hrs of online streaming content and audio music collection.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/asian.jpg?itok=PWg4PAss
Asian Paints' ‘Where the Heat is’ wins Best Entertaining Content award on OTT

MUMBAI: Asian Paints won the Best Entertaining content award for ‘Where the Heart is’ Season 3. The season kick started on 23rd August with six celebrities of B-town along with captain fantastic, Sunil Chettri.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/12/Netflix.jpg?itok=h6fmsMTu
Strong Netflix growth underlines OTT growth potential in India

Netflix India has just posted its earnings with the registrar of companies and reportedly, the video streaming giant has grown more than 700 per cent in the past 12 months. While the company doesn’t share these details publicly, an ET Tech report, quoting Netflix’s annual filing, says that the...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories