As expected, Apple on Tuesday posted its first year-over-year revenue decline in 15 years for the fourth fiscal quarter of 2016, but the company is guiding for a rosy forecast next quarter on strong anticipated iPhone sales.
Apple is forecasting revenue between $76 billion and $78 billion for the three months ending in December, typically a lucrative quarter thanks to the holiday shopping season. The guidance is up from the $75.9 billion performance put in at the same time last year.
According to the Financial Times, Apple CFO Luca Maestri told reporters initial demand for iPhone 7 "bodes well as we get into the December quarter." Separate reports had Maestri saying supply still lags demand for iPhone 7 Plus models and all Jet Black iPhone 7 versions.
For the first quarter of 2017, the company is guiding gross margin between 38 percent and 38.5 percent, with operating expense set between $6.9 billion and $7 billion. The usual 26 percent tax rate applies.
Apple narrowly beat Wall Street expectations for the fourth quarter of 2016 with $9 billion in net income on revenues of $46.9 billion, largely driven by iPhone sales of 45.5 million. Large numbers compared to tech sector competitors, the performance marked the first decline in revenues for Apple since 2001.
14 Comments
DOOOOOOOOOOM
No worries tho, Q4 is going to kick some serious ass
Something surreal about listening to an Apple earnings call...on an iPhone 7. Was like seeing network AppleTV commercials...on AppleTV.
The beleaguered computer maker... Yeah. Sorry press, those days are over. Talk about Samsung.