Bulletin: Apple Inc. Second-Quarter Revenues Fall 13% After A Record Fiscal 2015; Ratings Unchanged

SAN FRANCISCO (Standard&Poor's) April 27, 2016--Apple Inc.'s (AA+/Stable/A-1+) revenues fell 13% year over year in the second quarter to $50.6 billion as a 16% unit decline in iPhone sales, similar weakness across iPads and Macs, and currency headwinds weighed on the top line. Despite the decline, iPhone sales still accounted for 65% of revenues. Emerging markets were particularly pressured, with revenues from Greater China declining 26% after nearly doubling in size during fiscal 2015 and revenues from the rest of Asia-Pacific falling 25%. Adjusted EBITDA margin fell to 35%, while free operating cash flow reached $9 billion for the quarter. Dividends and net share repurchases totaled more than $9 billion but cash and investments grew by $17 billion

...SAN FRANCISCO (Standard & Poor's) April 27, 2016--Apple Inc.'s (##+/Stable/A-1+) revenues fell 13% year over year in the second quarter to $50.6 billion as a 16% unit decline in iPhone sales, similar weakness across iPads and Macs, and currency headwinds weighed on the top line. Despite the decline, iPhone sales still accounted for 65% of revenues. Emerging markets were particularly pressured, with revenues from Greater China declining 26% after nearly doubling in size during fiscal 2015 and revenues from the rest of Asia-Pacific falling 25%. Adjusted EBITDA margin fell to 35%, while free operating cash flow reached $9 billion for the quarter. Dividends and net share repurchases totaled more than $9 billion but cash and investments grew by $17 billion to $233 billion (90% of which is held overseas) due mostly to continued debt issuances. Apple also announced an update to its capital return program, under which it will increase its share repurchase authorization by $35 billion to $175 billion...

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