Apple Earnings Report

Apple (AAPL)'s iPhone sales have declined for the second consecutive quarter, with a 1% drop in Q3 FY24 (June quarter). However, overall revenue grew by 5% to $85.8 billion ($1.4 billion beat), and earnings exceeded Wall Street expectations. The high-margin Services drove the outperformance, hitting a record revenue of $24.2 billion, a 14% year-over-year jump. Services made up 45% of Apple’s gross profit.

Investors hope the upcoming Apple Intellignece AI features, set to be released in the fall, will reignite iPhone sales. Apple is betting on AI to spur upgrades, especially in China, where sales have lagged. While the initial rollout of AI features has been delayed, analysts believe the new tools could still give iPhone sales a much-needed boost. With many customers due for an upgrade, Apple's AI gamble may just pay off.