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Apple reported that Quarterly Revenue was up 5% Year-over-Year with iPhone revenue up Slightly over estimates

9 old #1 Cover - Apple Financials Related  Q

It's being reported this afternoon that Apple announced financial results for its fiscal 2024 third quarter ended June 29, 2024. The Company posted quarterly revenue of $85.8 billion, up 5 percent year over year, and quarterly earnings per diluted share of $1.40, up 11 percent year over year.

Apple reported fiscal third-quarter earnings on Thursday that beat Wall Street expectations, with overall revenue rising 5%, reports CNBC.   

Here’s how Apple did versus LSEG consensus estimates for the quarter ended June 29:

 

  • EPS: $1.40 vs. $1.35 estimated
  • Revenue: $85.78 billion vs. $84.53 billion estimated
  • iPhone revenue: $39.30 billion vs. $38.81 billion estimated
  • Mac revenue: $7.01 billion vs. $7.02 billion estimated
  • iPad revenue: $7.16 billion vs. $6.61 billion estimated
  • Wearables, Home, and Accessories revenue: $8.10 billion vs. $7.79 billion estimated
  • Services revenue: $24.21 billion vs. $24.01 billion estimated
  • Gross margin: 46.3% vs. 46.1% estimated

Apple did not provide formal guidance, although CEO Tim Cook and CFO Luca Maestri often share information about the current quarter on a call with analysts. 

Apple reported $21.44 billion in net income during the quarter, versus $19.88 billion in the year-ago period. 

Apple’s most important business remains the iPhone, which accounted for about 46% of the company’s total sales during the quarter. While Apple beat LSEG estimates, the product line still declined about 1% on an annual basis to $39.29 billion in revenue. 

“On a constant currency basis, we grew year on year. And so that’s sort of how we look at it from an operational point of view,” Cook told CNBC’s Steve Kovach. 

Cook said that while Apple doesn’t know about the positive sales impact from its newly announced Apple Intelligence service until it starts shipping to customers later this fall, he said that Apple had been increasing spending to get the service ready. 

“What we’ve done is we’ve redeployed a lot of people on to AI that were working on other things,” Cook said. “From a data center point of view, as you know, we have a hybrid approach. So we both have our own and we partner with people. And so that capex would be in the partners’ financials, and we would be paying expense.”

“Certainly embedded in our results this quarter is an increase year over year in the amount we’re spending for AI and Apple intelligence,” Cook continued. 

Apple showed strongest growth in its iPad division, which grew nearly 24% year-over-year to $7.16 billion in sales. Apple released new iPads during the quarter for the first time since 2022, which spurred a wave of upgrades.

Cook said that about half of iPad buyers haven’t owned one before, suggesting the tablet market is not yet saturated.

Apple’s Mac division reported $7 billion in sales, up about 2% from the year-ago quarter. 

Apple Watch sales, headphones such as Beats or AirPods, and HomePod home speakers are reported under “Wearables, Home, and Accessories.” Sales in the catch-all category declined 2% to $8.10 billion during the quarter. 

“A whopping two thirds of the Apple Watch buyers were new to the product. So, we’re still growing that base significantly,” Cook said. 

The Services business is most important growth category for Apple and includes hardware warranties, revenue from Google, monthly cloud storage subscriptions, and the company’s content subscriptions, such as Apple TV+. The company reported $24.21 billion in Services sales, up 14% and in-line with Apple’s forecast and LSEG estimates.

Apple said it had 1 billion paid subscriptions, which includes subscriptions to iPhone apps through Apple’s App Store. 

“Mainland China and Greater China actually had a record in the iPhone install base,” Cook said. “Kantar tells us we had the top three selling smartphones in urban China and the results in China represent an acceleration from the first half of the year.” CNBC

Apple's Press Release details.

10.0X3  Quarterly Financial News