Peak iPhone fears but Apple posts strong Q1 with TV business hitting record


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Joseph O'Halloran

| 27 January 2016




iPhone, Watch, services and notably TV have combined to drive all-time record revenue for CE giant Apple.



For its fiscal 2016 first quarter ending 26 December 2015, the company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion. These results compare with revenue of $74.6 billion and net income of $18 billion, in the year-ago quarter. Gross margin was 40.1% compared with 39.9% in the year-ago quarter. International sales accounted for two-thirds of the quarter’s revenue.

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” commented Apple CEO Tim Cook. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

Yet this good news was somewhat dimmed by guidance for the second quarter predicting that revenue would be between $50 billion and $53 billion, the slip in sales likely to softening in non-US markets and implying the first ever decline in iPhone sales since launch.

Though what was notable for Q1 was the Apple TV business being called out, specifically in the headline results presentation. The online video offering had a strong end to 2015 with content services such as Filmin VOD, TVPlayer and Al Jazeera being added to its lengthening channel roster.