Reporting season for the quarter is up and abound, and the big tech giants from Silicon Valley will be announcing their numbers to much anticipation of Wall Street. Likes of Google, Facebook and Apple are heavyweight stocks on the Nasdaq and financial figures from these company’s are pulse indicators of the sector and can move the boards.
On that front most interestingly Cuppertino has released its revenue and despite analyst prediction of a slow growth, which was bound to happen since a-not-so-exciting iPhone 6S launch, the expectation was a surprised one. For financial results fiscal 2016 third quarter ending June 25, 2016, the Company posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion. These results compare to revenue of $49.6 billion and net income of $10.7 billion in the year-ago quarter is a massive dip, but still much better faring than what was predicted, thanks mainly to iPhone SE and App Store.
“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,” said Tim Cook, Apple’s CEO. “We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”
“Our Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO.
With iPhone 7 set to launch this September, the rumours of a audio jack-free smartphone is the current buzz on the new model, but nothing else spectacular is being talked about. Tim Cook era has been criticised for lacking innovation and so far he has proven them right, but shareholders are happy with his dividend return to shareholders policy which Steve Jobs reluctantly ever did.
Looks like the momentum is slowing down apart from App Store, competition for the number one product is also intensifying, but Apple can pull of a surprise with radical and innovative iPhone 7. And there is also greenfield markets like India, China and South America who have yet to see their first iPhone.
