Apple Announces Q3 FY 2016 Results: App Store Up, Hardware Down

Today Apple announced their third quarter results for their fiscal year 2016. Much like last quarter, Apple has struggled to maintain the sales pace of the iPhone 6s, compared to the iPhone 6. For the quarter, Apple had revenues of $42.358 billion, which is down 11% from a year ago. Gross margin was $16.106 billion, down from $19.681 billion in Q3 2015, and percentage wise it is 38.0%. Operating income was $10.1 billion, down from $14.1 billion last year, and net income was down almost $3 billion to $7.8 billion. Diluted earnings per share were $1.42, down from $1.85 a year ago. Despite the lower quarter, Apple did beat expectations which has helped their share price in after-hours trading.

Apple announced a dividend of $0.57 per share payable on August 11^th to shareholders of record as of August 8^th. They also returned over $13 billion during Q3 through share buy-backs and dividends, and they have completed almost $177 billion of their $250 billion capital return program.

iPhone sales are far and away the largest part of the company, and this quarter Apple sold 40.4 million handsets. That is down from the 51.2 million last quarter, and 47.5 million in Q3 2015, meaning iPhone sales were down 15% year-over-year. This resulted in revenue of $24 billion, down 23% from a year ago. It’s certainly a noticeable drop, and it shows just how successful the iPhone 6 was when it launched.

Moving on, iPad sales continued their slow and steady decline. Sales of the tablet were just a hair under ten million for the quarter, which is a drop of 9% year-over-year. Revenue was $4.9 billion, which is up 7%. A year ago, the average selling price of the iPad was $415, but this quarter, average selling price for the iPad rose $85 to $490. Declining sales of the iPad Mini, as well as new sales of the higher priced iPad Pro are certainly the case, but Apple doesn’t break out the numbers for individual models to know just how much each was a factor.

The Mac didn’t fare very well either, with unit sales of 4.25 million, which is down 11% year-over-year. This resulted in revenue of $5.24 billion, down 13%. With basically no Mac refreshes in a long time, they are no longer outperforming the PC market as a whole, which was the case for the last while.

Apple’s “Other Products” includes Apple TV, Apple Watch, Beats, iPods, and accessories, and while none of this is broken down by sub-category, the Other Products as a whole also fell 16% in revenue compared to Q3 2015, with revenues for this quarter of $2.22 billion.

The one segment in which Apple had strong growth was their Services segment. Services grew by 19% compared to Q3 2015, with revenue of $5.976 billion, which is up almost a billion or 19% year-over-year. Q2 2016 revenue was pretty much the same at $5.991 billion, meaning services have once again outpaced both Mac and iPad sales, and now represent the second largest segment at Apple.

Overall, it’s the second consecutive quarter of revenue loss, and last quarter was the first time that happened since Q1 2003, so Apple is in somewhat unfamiliar territory. Their guidance for next quarter is $45.5 to $47.5 billion, and margins between 37.5% and 38%. That guidance is also for a loss of revenue, since Q4 2015 had the company coming in at $51.5 billion, and 39.9% margins. It will be interesting to see if hardware refreshes in the fall can stop the drop in sales.

Source: Apple Investor Relations

HP’s Elite x3 Windows 10 Smartphone to Cost $699, Set to Be Available Worldwide

When HP introduced its flagship Elite x3 phablet earlier this year at MWC, the smartphone made a very positive impression mostly because HP decided to make a bold move and create a Windows Continuum device aimed purely at the business professional on a company contract. It drew a little ire from some industry analysts, thinking that HP building a Windows phone would never see the light of day. To them it was a paper announcement, but this week shows that the Elite x3 is still alive and well, and coming to consumers and business users. What the company did not announce in February was its recommended price as well as countries, where it planned to make the product available. This weeks details show that the Elite x3 will hit the market in August and will be sold in 46 countries worldwide.

The HP Elite x3 smartphone is based on Qualcomm’s Snapdragon 820 SoC, as well as Microsoft’s Windows 10 Mobile OS. The device is equipped a 5.96” AMOLED display and comes with 64 MB of eMMC 5.1 NAND flash storage, 4 GB of LPDDR4 RAM as well as all the necessary connectivity features, including 4G/LTE, 802.11ac Wi-Fi, Bluetooth 4.0 and a USB Type-C connector. Developed specifically for enterprise and business users, who value security, the device is FIPS 140-2 certified and features Secure Boot (with iris and fingerprint scanners), full disk encryption with a 256-bit key, fTPM 2.0, and so on.

While the internal specifications of the HP Elite x3 are impressive, the company does not position the device as just its flagship smartphone. HP believes that there are enterprise customers interested in using one device for multiple workloads and in various situations by taking advantage of Microsoft’s Continuum technology, which allows you to run your phone as a desktop PC. To support such clients, HP intends to offer a special dock (with an Ethernet adapter, DisplayPort USB connectors, etc.) that can work with desktop displays as well as keyboards. When purchased from the HP online store, the dock should come as standard. In addition, the company plans to sell the Mobile Extender laptop, which does not have its own processor or storage, but relies on the Elite x3. The Mobile Extender has a 12.5” display (with 1920×1080 resolution), USB-C ports, speakers as well as a spill-resistant keyboard with a drain and backlighting.

Current competition, at least in the Continuum space, comes from Acer’s Liquid Jade Primo which was demoed at MWC and quietly shipped several days ago, and the Lumia 950.

According to Engadget, which cites a representative of HP, the phablet itself will cost $699 in the U.S. and $799 when acquired with a dock, starting from August 29. Slashgear claims that the Elite x3 will cost €863 in the Netherlands and 8,624 SEK in Sweden. Unfortunately, the price of the Mobile Extender is still unknown. 

Sources: Engadget, Slashgear, HP Netherlands, HP Sweden.

Gallery: HP’s Elite x3 Windows 10 Smartphone to Cost $699, Set to Be Available Worldwide

Verizon Announces Price And Availability For Moto Z And Moto Z Force Droid Editions

Today Motorola and Verizon announced the availability and pricing details for the Moto Z Droid Edition and the Moto Z Force Droid Edition, the Verizon exclusive versions of Motorola’s Moto Z smartphones. The Moto Z Droid with 32GB of internal storage costs $26 per month for 24 months using Verizon’s device payment plan or $624 total. The Moto Z Force Droid costs $30 per month for 24 months or $720 total. Both phones will also be available with 64GB of NAND through Motorola’s Moto Maker website for an extra $50. The new Moto Z Droids are up for preorder online starting today and will be available for purchase in Verizon stores beginning July 28.

Pricing for the Moto Mods, the modular accessories that snap onto the back of the phones using strong magnets, was also revealed. The JBL SoundBoost speaker, which includes two speakers, a kickstand, and an additional 1000mAh battery, costs $79.99. The Moto Insta-Share DLP projector, which outputs a 854×480 WVGA image at 50 lumens nominal and also includes an 1100mAh battery, is $299.99. Incipio, Kate Spade, and TUMI offer several 2200mAh Power Packs that range in price from $59.99 to $89.99. Each design comes in both standard and wireless charging versions, with the latter supporting the Qi and PMA standards.

Moto Insta-Share Projector, Style Shell, JBL SoundBoost speaker

Just like with past Motorola phones, there are several decorative back plates that allow you to customize the look and feel of the new Droids. These come in several colors and materials, including real wood, leather, and fabric, and sit flush with the rear camera when snapped into place. The decorative Style Shells start at $14.99, with the nylon fabric and wood versions costing $19.99 and the leather-covered plates costing $24.99. All of the Moto Mods and back plates will be available the same day as the phones.

Motorola first announced the Moto Z and Moto Z Force at Lenovo’s Tech World event in June. These new phones replace the Moto X family as the company’s flagship devices. Both phones have a 5.5-inch QHD (2560×1440) AMOLED screen and come with Qualcomm’s Snapdragon 820 SoC, 4GB LPDDR4 RAM, and either 32GB or 64GB of internal storage that’s expandable via microSD.

Moto Z Droid (left) and Moto Z Force Droid (right)

There are a few notable differences between the two models. The Moto Z Droid comes with a smaller 2600mAh battery packed inside an especially thin all-aluminum chassis. The Moto Z Force Droid bumps battery capacity to 3500mAh and increases rear camera resolution to 21MP versus 13MP for the Moto Z Droid. It also includes a hybrid autofocus system that combines PDAF with a laser, which should be a step up from the standard Z’s laser autofocus. Both cameras have f/1.8 apertures and OIS.

While the Moto Z Droid’s screen is covered edge to edge with Corning Gorilla Glass, the Moto Z Force Droid uses Motorola’s second-generation Moto ShatterShield technology, which should improve the screen’s resistance to cracking or shattering if dropped.

For more information about these phones, including a full list of specifications and additional pictures and discussion, please see our original Lenovo Tech World article.