Apple shares sink on first drop in revenue since 2001

Photo: Drew Angerer/ Getty Images.

Apple reported its September quarter earnings after the market closed on Tuesday and the stock has dropped over 2% in after-market trading.

This is Apple’s fourth quarter for the fiscal year. The stock is down for the year but has had a good recent string of weeks.

For the third consecutive quarter, iPhone sales were down from the year-ago period.

Apple sold 45.5 million iPhones, down from last year’s sales of 48.05 million.

But only a few weeks of iPhone 7 sales were included in this quarter. Next quarter is the holiday quarter, which is Apple’s biggest quarter, and it will be the first full period of iPhone 7 sales.

Apple is projecting revenue of between $76 billion and $78 billion, which would be a slight return to growth for the company.

We’ll be updating the story and covering the earnings conference call live, so hit refresh or click here for the latest.

Here’s what Apple reported for the September quarter:

  • Q4 EPS (GAAP): $1.67 per share, down 14.79% year-over-year (y/y), versus expectations of $1.65
  • Q4 revenue: $46.9 billion, down 8.93% y/y, versus expectations of $46.9 billion
  • Gross margin: 38%, down 4.76% y/y, versus expectations of 37.9%
  • iPhone unit sales: 45.5 million, down 5.3% y/y, versus expectations of 45 million
  • iPhone ASP: $618, down 7.7% y/y, versus expectations of $625
  • iPad unit sales: 9.2 million, down 6.8% y/y, versus expectations of 9.1 million
  • Mac unit sales: 4.8 million, down 15.7% y/y, versus expecations of 5.1 million
  • December quarter revenue guidance: Between $76 billion and $78 billion. At its midpoint, that guidance suggests 1.44% growth next quarter over last year.

Live notes from the earnings call:

5:02: Apple really should use Beats 1 as the hold music.

5:03: Apple CEO Tim Cook opens by talking about Thursday’s MacBook Pros, which leaked today!

5:04: iPhone sales up y/y in 33 markets, says Cook. Apple music rev grew by 22% thanks the growing popularity of apple music.

5:05: Cook talking Apple Pay in Japan. “We expect a strong response and rapid adoption … we are seeing strong growth in transaction volume in Apple Pay. Transactions up 500% y/y for the September quarter.” Says more transactions in September than in all of 2015.

5:06: “We have almost doubled the size of our services revenue in the last four years,” says Cook.

5:06: Demand continues to outstrip supply for new iPhone 7 and 7 Plus, says Cook.

5:07: Finally Cook gets around to talking Apple Watch. Apple still doesn’t give Apple Watch revenue, but “other products” were down.

5:09: Tim Cook talks Apple’s Home app and its new smart home integrations. “We expect over 100 HomeKit products on the market this year … all reviewed by Apple,” Cook says.

Here’s a table with all the results:

Here are the charts:

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