Summary
Apple Inc.'s Q3 2015 results, as filed on July 22, 2015, show a robust performance driven by strong iPhone sales, which accounted for 63% of total net sales. Total net sales for the quarter increased by a significant 33% year-over-year to $49.6 billion, with a notable 112% surge in Greater China reflecting the strong adoption of iPhone 6 and 6 Plus in the region. This growth was partially offset by a decline in iPad sales, attributed to a longer repurchase cycle and potential cannibalization. The company also saw growth in its Services segment and a modest increase in Mac sales. Financially, Apple reported a net income of $10.7 billion, or $1.85 per diluted share, a substantial increase from the prior year. The company continued its aggressive capital return program, repurchasing $10 billion in stock and paying $3.1 billion in dividends during the quarter. Despite a strengthening U.S. dollar impacting international sales, Apple's gross margin percentage improved slightly to 39.7% due to a favorable product mix and better leverage on fixed costs. The company ended the quarter with a strong cash position of $15.3 billion and total cash, cash equivalents, and marketable securities exceeding $200 billion.
Financial Highlights
57 data points| Revenue | $49.60B |
| Cost of Revenue | $29.92B |
| Gross Profit | $19.68B |
| R&D Expenses | $2.03B |
| SG&A Expenses | $3.56B |
| Operating Expenses | $5.60B |
| Operating Income | $14.08B |
| Interest Expense | $201.00M |
| Net Income | $10.68B |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 22.92B |
| Shares Outstanding (Diluted) | 23.09B |
Key Highlights
- 1Net sales surged 33% year-over-year to $49.6 billion, driven by a 59% increase in iPhone sales.
- 2Greater China emerged as a significant growth driver, with net sales in the region increasing by 112% year-over-year.
- 3Net income rose to $10.7 billion, or $1.85 per diluted share, demonstrating strong profitability.
- 4Apple continued its substantial capital return program, repurchasing $10 billion in common stock and paying $3.1 billion in dividends during the quarter.
- 5Gross margin percentage improved to 39.7% due to a favorable product mix and improved leverage, despite foreign currency headwinds.
- 6iPad sales experienced a 23% decline in net sales and an 18% decline in unit sales, indicating market challenges for the product.
- 7The company maintained a strong liquidity position with $15.3 billion in cash and cash equivalents and over $200 billion in total cash, cash equivalents, and marketable securities.