Editing Apple Inc. (section)

=== Financial Performance: Strengths and Challenges   ===

Apple’s financial results in 2016 painted a nuanced picture. The company reported a 14% decline in profits, falling to $45.7 billion, despite a significant revenue increase of 27.85% in 2015 to $233.7 billion.<ref>{{cite web |url=https://www.theguardian.com/technology/2016/oct/25/apple-profits-sales-decline-2016-iphone-7 |quote=Apple's profits fell 14% to $45.7 billion in 2016. }}</ref> This dip in profitability was partly attributed to operational efficiency challenges, as evidenced by a sharp decline in the Times Interest Earned (TIE) ratio, which dropped from 136.73% in 2014 to 41.23% in 2016.<ref>{{cite web |url=https://www.researchgate.net/publication/384676075_Financial_Performance_Analysis_of_Apple_and_Microsoft_A_Comparative_Study_2014-2023 |quote=Apple's Times Interest Earned (TIE) ratio decreased from 136.73% in 2014 to 41.23% in 2016. }}</ref> This indicated a reduced ability to cover interest expenses, reflecting pressure on the company’s financial health.  

In terms of market share, Apple’s global smartphone presence slipped by one percentage point to 18% in Q4 2016, yet it managed to edge out Samsung during the same quarter, showcasing its resilience in a highly competitive market.<ref>{{cite web |url=https://www.investopedia.com/apple-iphone-sales-fall-5-percent-in-q4-as-global-market-share-slips-8773280 |quote=Apple's global smartphone market share slipped to 18% in Q4 2016. }}</ref><ref>{{cite web |url=https://9to5mac.com/2017/02/15/samsung-loses-market-share-to-apple-in-q4-2016/ |quote=Apple edged out Samsung in market share during Q4 2016. }}</ref> Regionally, while detailed breakdowns are scarce, the overall trend suggested a slight decline in market presence, despite Apple’s strong competitive positioning. The company’s Q3 2016 revenue stood at $42.4 billion, with a net income of $7.8 billion, further highlighting its ability to generate substantial earnings even amid fluctuating profitability.<ref>{{cite web |url=https://www.apple.com/newsroom/2016/07/apple-reports-third-quarter-results/ |quote=Apple's Q3 2016 revenue was $42.4 billion. }}</ref><ref>{{cite web |url=https://www.apple.com/newsroom/2016/07/apple-reports-third-quarter-results/ |quote=Apple's Q3 2016 net income was $7.8 billion. }}</ref>