AWT News Update: July 26, 2016

Apple CFO Luca Maestri. Photo via Apple

Apple CFO Luca Maestri. Photo via Apple

It's Apple quarterly earning report day, and we have a short summary of everything you need to know -- basically, things weren't that great, but the expectations for next quarter are much better and the share price has actually gone up in after-hours trading:

  • Find out more about the Apple Q3 2016 Earnings Call
  • Some rumors about the iPhone 7/iPhone 6SE or whatever it will be called

The text version of the podcast can be read below. To listen to the podcast here, click the play button on the player below.

Text Version

Hi, this is Steve Sande for Apple World Today, and this is the AWT News Update for July 26, 2016.

Apple released its third-quarter 2016 earnings statement this afternoon, and while the numbers weren’t particularly good, the expectations for the next quarter are optimistic. As a result, after-hours trading showed shares of Apple up about 7 percent earlier. Services continued to grow at a strong rate, 19 percent year over year with App Store revenue at its highest level ever. The company’s revenue was $42.4 billion for the quarter, with income of $7.8 billion. That’s in comparison with $49.6 billion last year and $10.7 billion in the year ago quarter. iPad Pro sales to businesses appear to be raising the average selling price of all tablets; although sales were down 3 percent, revenues were up 10 percent from the previous quarter. iPhone numbers were quite bad, with sales down 21 percent from the previous quarter and 15 percent down from the year-ago quarter. Mac sales — despite Apple’s seeming tendency to ignore the platform — were up 5 percent from the previous quarter and revenues were actually up 3 percent sequentially. Apple DID beat the street, with more iPhones sold than expected. The company returned about $13 billion to investors as part of the share repurchase and dividend programs, and a cash dividend of $0.57 per share will be paid on August 11, 2016 to shareholders of record as of August 8, 2016.

One fun rumor today, or maybe it’s actually two rumors. Apparently the iPhone 7 or iPhone 6SE or whatever the heck it’s going to be called will do away with a physical home button, using a static button using haptic feedback instead. This works similarly to the Force Touch trackpad on the 12-inch MacBook and new MacBook Pros, simulating the feel of a click. In line with this rumor is the fact that it will allegedly make the phone even more water resistant than before, although I doubt if Apple will run ads with rappers pouring champagne onto the new phone. Oh, and one other thing. Japanese website Macotakara is saying that the new iPhone will come in five colors — the existing space gray, gold, rose gold and silver, and a new black version similar to the Mac Pro.

That’s all for today; We’ll be back tomorrow afternoon with another edition of the AWT News Update.