Apple Earnings Report - Q3 2024
Apple announced its fiscal third-quarter earnings on Thursday, reporting revenue of $85.8 billion, which represents a 5 percent increase year over year.
Apple's most crucial business is still the iPhone, which represented roughly 46% of the company's total sales for the quarter. Despite this, revenue from the iPhone decreased by approximately 1% year over year, totaling $39.29 billion.
Apple experienced the strongest growth in its iPad division, which saw a nearly 24% increase year over year, reaching $7.16 billion in sales. The release of new iPads during the quarter, the first since 2022, prompted a surge in upgrades.
Cook noted that approximately half of iPad purchasers were first-time buyers, indicating that the tablet market is not yet saturated.
Apple’s Mac division reported $7 billion in sales, marking a 2% increase from the same quarter last year.
Sales of Apple Watch, Beats and AirPods headphones, and HomePod speakers are categorized under “Wearables, Home, and Accessories.” This category saw a 2% decline, totaling $8.10 billion for the quarter.
Cook mentioned that two-thirds of Apple Watch buyers were new to the product, highlighting continued significant growth in that segment.
The Services business, which includes hardware warranties, revenue from Google, monthly cloud storage subscriptions, and content subscriptions like Apple TV+, remains Apple's key growth area. The company reported $24.21 billion in Services revenue, a 14% increase.
Apple stated that it has more active devices in each of its regions than ever before, although it did not specify the exact number. This metric is crucial as it represents a pool of existing customers to whom Apple can market its profitable services. In February, Apple reported having 2.2 billion active devices.
The company also announced it has reached 1 billion paid subscriptions, which includes subscriptions to iPhone apps through the App Store.
However, Apple's sales in Greater China, which includes Taiwan and Hong Kong, fell by 6% to $14.72 billion. The company is facing pressure in mainland China as local competitors like Huawei launch rival products.
“I can’t speak to every chapter of the book, but we are very confident about the long term,” Cook said during a call with analysts. Apple reported spending $32 billion on dividends and share repurchases during the quarter.
Apple shares are up approximately 18.6% year-to-date despite a challenging start to the year.
Visit Us: https://graniteshares.com/institutional/uk/en-uk/
Capital at Risk | Sophisticated Investors Only
Sources:
Apple results
Apple earnings call
Yahoo finance
CNBC
Apple's most crucial business is still the iPhone, which represented roughly 46% of the company's total sales for the quarter. Despite this, revenue from the iPhone decreased by approximately 1% year over year, totaling $39.29 billion.
Apple experienced the strongest growth in its iPad division, which saw a nearly 24% increase year over year, reaching $7.16 billion in sales. The release of new iPads during the quarter, the first since 2022, prompted a surge in upgrades.
Cook noted that approximately half of iPad purchasers were first-time buyers, indicating that the tablet market is not yet saturated.
Apple’s Mac division reported $7 billion in sales, marking a 2% increase from the same quarter last year.
Sales of Apple Watch, Beats and AirPods headphones, and HomePod speakers are categorized under “Wearables, Home, and Accessories.” This category saw a 2% decline, totaling $8.10 billion for the quarter.
Cook mentioned that two-thirds of Apple Watch buyers were new to the product, highlighting continued significant growth in that segment.
The Services business, which includes hardware warranties, revenue from Google, monthly cloud storage subscriptions, and content subscriptions like Apple TV+, remains Apple's key growth area. The company reported $24.21 billion in Services revenue, a 14% increase.
Apple stated that it has more active devices in each of its regions than ever before, although it did not specify the exact number. This metric is crucial as it represents a pool of existing customers to whom Apple can market its profitable services. In February, Apple reported having 2.2 billion active devices.
The company also announced it has reached 1 billion paid subscriptions, which includes subscriptions to iPhone apps through the App Store.
However, Apple's sales in Greater China, which includes Taiwan and Hong Kong, fell by 6% to $14.72 billion. The company is facing pressure in mainland China as local competitors like Huawei launch rival products.
“I can’t speak to every chapter of the book, but we are very confident about the long term,” Cook said during a call with analysts. Apple reported spending $32 billion on dividends and share repurchases during the quarter.
Apple shares are up approximately 18.6% year-to-date despite a challenging start to the year.
Visit Us: https://graniteshares.com/institutional/uk/en-uk/
Capital at Risk | Sophisticated Investors Only
Sources:
Apple results
Apple earnings call
Yahoo finance
CNBC
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