Apple announces $42.4 billion in revenue, $7.8 billion profit for Q3 2016

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Date: Tuesday, July 26th, 2016, 14:42
Category: Apple Pay, Finance, iOS, iPad, iPad Pro, iPhone, macOS, News, Sierra, Siri


You know, in most businesses, a quarterly profit of $7.8 billion would be considered a good thing.

In Apple’s frame of mind, this isn’t that stellar.

In today’s Q3 2016 conference call, representatives from Apple cited revenues of $42.4 billion, a profit of $7.8 billion with a margin of 38 percent.

Apple CEO Tim Cook cited the successful launch of the iPhone SE, wherein demand outstripped capacity at first. Additional capacity was brought online to handle this.

Cook cited an 8 percent decline in iPhone sales from Q3 2015.

Cook also cited a 19 percent growth in services with App Store revenue up 37 percent to an all-time high.

During the conference call, representatives lauded exceptionally strong iPad Pro sales, Cook, citing the very strong sales of the 9.7-inch iPad Pro model.

Apple Watch sales numbers continued to remain non-specific, Cook stating that the device “continues to be the best-selling smart watch in the world.”

Cook also mentioned new Siri functionality for functions such as booking a ride with a car sharing service or sending money between users.

Perhaps one of the more interesting elements of the conference call, representatives discussed how artificial intelligence and machine learning helped Siri both understand spoken words as well as the intent behind them. This fall, Siri will be present across Apple’s entire product line with machine learning being used more widely across the platform

This fall, Apple will introduce “differential privacy”, which will use machine learning on your device while sharing a minimum of information across the Internet.

Additionally, Apple Pay will be present via Safari this fall while macOS Sierra will be able to detect other devices and unlock them. Features like a Universal Clipboard will share clipboard data from other devices.

Finally, in response to a question from analyst Gene Munster about Pokemon Go and augmented reality, Tim Cook stated that Apple is investing resources in augmented reality as a platform.

As always, please let us know what you think in the comments.

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