Apple Inc. Stock Falls After Earnings Result

Apple Inc. (Nasdaq:AAPL) released the earnings results for the fourth quarter of its fiscal 2016 after closing bell, posting earnings of $1.67 per share on $46.9 billion in sales. Analysts had been expecting earnings of $1.66 per share on $46.9 billion in sales for the quarter that ended Sept. 24. In the same quarter last year, the iPhone maker reported $1.96 per share in adjusted earnings on $51.5 billion in sales. Apple Inc. (AAPL) had guided for September quarter sales of $45.5 billion to $47.5 billion and a gross margin of 37.5% to 38%.

Apple sells more iPhones than expected

Apple Inc.’s net income declined to $9 billion from $11.1 billion last year, while the gross margin was 38%, compared to 39.9% in the same quarter last year. Americas revenue declined 7% to $20.2 billion, while Greater China revenue plunged again, falling this time 30% year over year to $8.8 billion. Apple Inc. did well in Japan with a 10% increase in sales to $4.3 billion.

“Our strong September quarter results cap a very successful fiscal 2016 for Apple,” Apple Chief Executive Officer Tim Cook said in a statement. “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.”

The company sold 45.5 million iPhones during the September quarter, marking a 5% year over year decline in units and the third consecutive quarter in which iPhone units declined year over year. Analysts estimated that it had sold about 45 million iPhones during the September quarter, which was a decline of about 3 million compared to the year-ago quarter. iPhone revenue fell 13% year over year to $28.16 billion.

Apple Inc. sold 9.3 million iPads, which was a 6% year over year decline in units, and 4.9 million Macs, marking a 14% decline in units. Other revenue, which includes the Apple Watch and Apple TV, amounted to $2.37 billion, missing the consensus of $2.44 billion. In the year-ago quarter, Other revenue was $3 billion.