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/2019/11/19/tiktok.jpg?itok=dETywXZs
Tik-Tok begins testing 'link in bio' feature to monetise its billion plus user-base

MUMBAI: Popular social networking app Tik-Tok has begun limited test of a feature that will allow users to add links to products and e-commerce sites on their bio and posts. The Chinese short-video making platform, with a billion plus users, has been exploring ways to monetise its ever-increasing...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/shemaroo.jpg?itok=-IAvukqt
ShemarooMe expands in the USA Market

MUMBAI: ShemarooMe, a one-stop destination for bollywood films, classic cinema, Gujarati and other regional movies, devotional and kids’ content is now available on the Roku platform to users in the US. The availability of the channel on Roku devices further strengthens ShemarooMe’s presence in the...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/zee5.jpg?itok=ky8kt-Ek
ZEE5 to premiere Dream Girl on 21st November

MUMBAI: India’s largest video streaming platform ZEE5, is all set to premiere one of the recent, most critically acclaimed films and an audience favourite Dream Girl. The biggest ever first-day opener for Ayushmann, Dream Girl is a comedy film based in a small town. In the film, Ayushmann Khurrana...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/amazon.jpg?itok=Al7RkxDL
Amazon Prime brings new season of The Expanse

MUMBAI: Season 4 of The Expanse, its first as a global Amazon Original, begins a new chapter for the series, with the crew of the Rocinante on a mission from the U.N. to explore new worlds beyond the Ring Gate. Humanity has been given access to thousands of Earth-like planets which has created a...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/youtube.jpg?itok=_qMD3KsG
Google India unlocks prepaid plans for YouTube Premium, YouTube Music Premium

Google India unlocked the option of prepaid plans for YouTube Premium and YouTube Music Premium on Monday. The services which entered India in March were priced at Rs 129 a month for Premium, and Rs 99 a month for Music Premium.

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/18/amazon.jpg?itok=yoMHbOdN
Amazon Original Inside Edge trailer released today All 10 episodes of the second season to launch on Amazon Prime Video on the 6th of December, 2019

MUMBAI: In the next edition of the PPL, a volatile Vayu Raghavan leads the Mumbai Mavericks to face their biggest adversary yet, the Haryana Hurricanes, who are led by a reinvented Arvind Vashisht. But the teams must also counter colossal scandals that’ll rock the world of cricket. In the sport’s...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/18/kantaar.jpg?itok=3XZfNsVk
Kantar and VTIONTM announce partnership to roll out ‘OTT Audience Measurement’ solution

MUMBAI: Kantar, the world’s leading data, insights and consulting company, has partnered with VTIONTM to roll out ‘OTT Audience Measurement’, India’s first, real-time audience measurement solution that redefines audience measurement.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/18/shemaroo.jpg?itok=Oflqlai9
ShemarooMe expands its reach for global audiences

MUMBAI: Shemaroo Entertainment Limited, India’s leading content powerhouse has announced a worldwide launch of its video streaming platform – ShemarooMe, in more than 150 countries. With this move Shemaroo aims to bring entertaining content to every asli Bollywood fan in every corner of the world....

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/18/Star-India.jpg?itok=u9FV1EgD
Star India's Gaurav Banerjee on Hotstar's content diversity, SVOD uptake & nurturing talent

Hotstar has consistently outperformed some of the global over the top (OTT) platforms in India with the help of a mix of TV show content, sports and the recently-added originals. After Criminal Justice, the next original to launch under the Hotstar umbrella will be Out of Love.

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories