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Apple’s worst quarter reveals financial woes: Today in Apple history

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March 28: Today in Apple history: Apple racks up staggering $700 million loss March 28, 1996: In a dire message to Wall Street, Apple warns that it will report a $700 million after-tax loss for its most recent quarter.

Apple’s biggest quarterly loss in history, the shocking news reveals a company in far more financial trouble than previously thought. More than half the loss comes from $1 billion of unsold products.

Apple’s worst quarter ever

The $700 million loss more than tripled Apple’s previous low-water mark, which occurred during the third quarter of 1993. (At that time, the company recorded a $188 million deficit.) In addition to unsold products, Cupertino faced two other key challenges: clone Macs and the company’s decision to slash its prices to remain competitive.

As I’ve noted before, the clone Macs — while making perfect sense in theory — turned out to be a disaster for Apple. Third-party manufacturers only paid Apple $50 as a licensing fee for each machine produced. This might have been good for Apple if clone Mac sales exploded overnight. However, the end result of the clones was not more Macs, but cheaper Macs.

The decision to slash Mac prices also proved dangerous, since Apple sustained much higher costs than most computer manufacturers due to its development of both hardware and software. As one final boot in the teeth, Apple underestimated the popularity of some of its new products. As a result, Cupertino simply could not deliver them in the quantities demanded.

Start of the Apple turnaround

While things certainly looked bad for Apple in the early days of 1996, reasons for optimism remained despite the company’s worst quarter ever. New Apple CEO Gil Amelio took the reins from previous CEO Michael Spindler, who got dumped following a failed merger attempt between Apple and Sun Microsystems.

Amelio previously built a reputation as a turnaround artist at National Semiconductor. As CEO there, he took a company that lost $320 million over four years and made it profitable. Amelio also possessed a strong engineering background, which made him one of the strongest technical people ever to run Apple.

“I’m confident at this point that I know what the problems are and that they are fixable,” Amelio said in a statement concerning Apple’s $700 million loss. “The strategic and operating plans we are currently developing will enable us to build upon Apple’s fundamental strengths and competitive position.”

Apple in the 1990s

On the ground, Apple products continued to do well. But being an Apple fan in the 1990s often proved frustrating. The picture seemed very different from how it looked at the top. Many local Mac retailers reported that the computers sold well. Even post-Windows 95, a gulf in quality existed between the seamless experience Apple delivered and what Windows users endured.

Ultimately, Amelio oversaw more money-losing quarters before making his best (but most personally destructive) decision at Apple: buying Steve Jobs’ NeXT Inc. and bringing Jobs back to the company he co-founded.

Before too long, Jobs started running Apple. Amelio got the boot, and one of the most famous turnarounds in tech history got underway.

Do you remember when Apple reported its worst quarter ever? Were you a fan, an Apple employee or someone who relied on Apple in some other capacity? Leave your comments below.



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Apple announces first quarter results of 2024

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Apple has announced its first quarter results for 2024, the results cover the fiscal first quarter until the 30th of December 2023, and the company has a total quarterly revenue of $119.6 billion which is up 2 percent over the same period in the previous year.

Apple has announced quarterly earnings per diluted share of $2.18 which is up 16 percent on the same time last year, it has announced a cash dividend of $0.24 per share which will be paid on the 15th of February.

“Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “We are pleased to announce that our installed base of active devices has now surpassed 2.2 billion, reaching an all-time high across all products and geographic segments. And as customers begin to experience the incredible Apple Vision Pro tomorrow, we are committed as ever to the pursuit of groundbreaking innovation — in line with our values and on behalf of our customers.”

“Our December quarter top-line performance combined with margin expansion drove an all-time record EPS of $2.18, up 16 percent from last year,” said Luca Maestri, Apple’s CFO. “During the quarter, we generated nearly $40 billion of operating cash flow, and returned almost $27 billion to our shareholders. We are confident in our future, and continue to make significant investments across our business to support our long-term growth plans.”

You can see Apple’s full earnings report for the first fiscal quarter of 2024 over at the company’s website at the link below.

Source Apple

Image Credit: Andy Wang

Filed Under: Gadgets News





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Apple reports fourth quarter financial results 2023

Apple reports fourth quarter results ending September 30 2023

Apple Inc. reported its financial results ending September 30, 2023, revealing a slight dip in quarterly revenue compared to the previous year but an increase in earnings per share. The quarterly revenue for the tech giant was $89.5 billion, marking a 1% decrease from the corresponding period in the previous year. However, despite this slight decline, the company’s earnings per diluted share saw a significant rise, increasing by 13% year over year to reach $1.46.

Apple’s CEO, Tim Cook, shared that the company achieved record September quarter revenue for its flagship product, the iPhone. Furthermore, the company also set an all-time revenue record in its Services sector. The record-breaking performance of the iPhone and Services sectors highlights Apple’s ability to maintain strong sales and profit margins despite the overall decrease in quarterly revenue.

“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”

Apple fourth quarter financial results

In addition to strong financial performance, Apple also demonstrated its commitment to environmental sustainability. The company introduced its first carbon-neutral Apple Watch models as part of its product lineup for the holiday season. Alongside the environmentally friendly watches, Apple is also set to launch the iPhone 15, which the company describes as part of its “strongest lineup of products ever.” Apple’s commitment to sustainability extends beyond individual products, with a company-wide goal to make all its products carbon neutral by 2030.

Apple’s CFO, Luca Maestri, also reported impressive figures for the company. Apple reached a new all-time high in the active installed base of devices across all its products and geographic segments. This suggests that despite the competitive tech market, Apple’s user base and product reach continue to grow.

“Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty,” said Luca Maestri, Apple’s CFO. “During the September quarter, our business performance drove double digit EPS growth and we returned nearly $25 billion to our shareholders, while continuing to invest in our long-term growth plans.”

In terms of shareholder returns, Apple demonstrated its commitment to its investors by returning nearly $25 billion in the September quarter. This was achieved while the company continued to invest in its long-term growth plans, striking a balance between rewarding shareholders and reinvesting in the company’s future.

Furthermore, Apple’s board of directors declared a cash dividend of $0.24 per share of the company’s common stock, payable on November 16, 2023. This move further underscores Apple’s commitment to delivering value to its shareholders.

Apple Q4 2023 financial results conference call November 2 2023

To ensure transparency and accessibility, Apple made its Q4 2023 financial results conference call available via live streaming on November 2, 2023. The webcast will be available for replay for approximately two weeks, allowing shareholders and interested parties to review the company’s performance and future plans at their convenience.

Despite the challenges posed by a slight decrease in quarterly revenue, Apple’s Q4 2023 results paint a picture of resilience and strategic growth. The company’s record-breaking iPhone and Services revenue, combined with its commitment to environmental sustainability and shareholder returns, suggest that Apple remains a formidable player in the global tech industry. As the company moves forward, it will be interesting to see how these strategies and initiatives continue to shape its financial performance and market position.

Filed Under: Technology News, Top News





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