Apple today announced financial results for its fiscal 2016 third quarter ended June 25, 2016. The Company posted quarterly revenue of $42.4 billion and quarterly net income of $7.8 billion, or $1.42 per diluted share. These results compare to revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter. Gross margin was 38 percent compared to 39.7 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter's revenue.

Apple's CEO Tim Cook stated this afternoon that "We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter. We had a very successful launch of iPhone SE and we're thrilled by customers' and developers' response to software and services we previewed at WWDC in June."

Apple's CFO Luca Maestri that Apple's "Services business grew 19 percent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record. We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program."

Apple is providing the following guidance for its fiscal 2016 fourth quarter:

• revenue between $45.5 billion and $47.5 billion
• gross margin between 37.5 percent and 38 percent
• operating expenses between $6.05 billion and $6.15 billion
• other income/(expense) of $350 million
• tax rate of 25.5 percent

Apple's board of directors has declared a cash dividend of $.57 per share of the Company's common stock. The dividend is payable on August 11, 2016 to shareholders of record as of the close of business on August 8, 2016.

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Reuters reported this afternoon that "iPhone sales fell for the second straight quarter, although the 15 percent drop was less than feared.

The company's total revenue dropped 14.6 percent in the third-quarter ended June 25, also declining for the second quarter in a row.

Apple said it sold 40.4 million iPhones in the third quarter, more than the average analyst forecast of 40.02 million, according to research firm FactSet StreetAccount.

Apple had reported a 16.3 percent drop in iPhone sales in the previous quarter, the first decline since the smartphone was launched in 2007.

Sales of iPhones account for about two-thirds of the total sales of the world's most valuable publicly traded company.

Apple's iPhone lineup includes the iPhone 6S and 6S Plus, as well as the smaller and cheaper iPhone SE.

Sales in Greater China, once touted as Apple's next growth engine, decreased 33.1 percent, compared with a 112.4 percent growth in the year earlier quarter and a near 26 percent fall in the second quarter.

Apple's services business, which includes the App Store, Apple Pay, iCloud and other services generated nearly $6 billion in revenue, up 18.9 percent from the previous year.

The company forecast fourth-quarter revenue of $45.5 billion to $47.5 billion, largely above Wall Street's average estimate of $45.71 billion, according to Thomson Reuters I/B/E/S. For more, see the full Reuters report here.

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