Apple has just released the financial results for its fiscal 2016 third quarter ended 25 June 2016. From April to June 2016, the device sales have slowed down while its service revenue grows 19% as App Store hits an all-time record.
For Q3 2016, Apple posted quarterly revenue of US$42.4 billion and quarterly net income of US$7.8 billion. That’s a decline compared to the revenue US$49.6 billion and net income of US$10.7 billion compared to the same quarter last year. International sales accounted for 63% of the quarter’s revenue.
When it comes to devices, the sales of the iPhone, iPad and Mac have declined compared to the same quarter last year. Last year, Apple sold 47.53 million iPhones but this year, they sold only 40.4 million iPhones. iPad sales continue to decline year on year, going from 13.28 million iPads in Q3 2014, down to 10.93 million iPads in Q3 2015 and the recent reports only see 9.95 million iPad devices sold. The sales for Mac computers also declined by 11% year-on-year, down from 4.80 million units to 4.25 million units.
Revenue for other products, which includes sales of Apple TV, Apple Watch, Beats products, iPod, Apple-branded accessories, and such, declined 16% compared to Q3 2015. Apple saw revenue of US$2.22 billion in Q3 2016 compared to US$2.64 billion last year.
But not everything is declining while the world is waiting for the launch of the iPhone 7. Apple reports that its Services business grew 19% year-on-year, and its App Store revenue is at its highest ever, as their install base continued to grow and transacting customers hit an all-time record.
“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter. We had a very successful launch of the iPhone SE and we’re thrilled by customers’ and developers’’ response to software and services we previewed at WWDC in June.” – Tim Cook, CEO of Apple.