Apple has released its financial results for its fiscal 2024 third quarter, ending June 29, 2024.
The company reported a quarterly revenue of $85.8 billion, marking a 5 percent increase compared to the same period last year. Quarterly earnings per diluted share rose to $1.40, an 11 percent year-over-year increase.
“Apple is pleased to announce a new June quarter revenue record of $85.8 billion, up 5 percent from last year,” said Tim Cook, CEO of Apple. “We introduced significant updates to our software platforms at the Worldwide Developers Conference, including Apple Intelligence, a new personal intelligence system that integrates powerful, private generative AI models into iPhone, iPad, and Mac. We eagerly anticipate sharing these advancements with our users and remain committed to investing in innovations that enhance our customers’ lives while adhering to our core values.”
Luca Maestri, Apple’s CFO, highlighted the company’s strong performance: “Our record business performance this quarter led to an 11 percent growth in EPS and generated nearly $29 billion in operating cash flow. This enabled us to return over $32 billion to shareholders. Additionally, our active device installed base reached an all-time high across all geographic segments, driven by high levels of customer satisfaction and loyalty.”
For the quarter ending June 29, Apple exceeded LSEG consensus estimates with an earnings per share (EPS) of $1.40, compared to the forecasted $1.35. The company’s revenue was $85.78 billion, higher than the estimated $84.53 billion.
iPhone revenue was $39.30 billion, slightly above the $38.81 billion estimate. Mac revenue was close to expectations at $7.01 billion versus $7.02 billion estimated. iPad revenue surpassed estimates at $7.16 billion against the anticipated $6.61 billion.
Revenue from Wearables, Home, and Accessories came in at $8.10 billion, beating the $7.79 billion estimate. Services revenue reached $24.21 billion, above the expected $24.01 billion. The gross margin stood at 46.3%, marginally higher than the 46.1% estimate.
“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,” said Apple CEO Tim Cook to CNBC.
“What we’ve done is we’ve redeployed a lot of people onto AI that were working on other things,” said Cook. “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.”
Cook added, “Certainly embedded in our results this quarter is an increase year over year in the amount we’re spending for AI and Apple intelligence.”
The Apple CEO also told CNBC nearly 50% of iPad purchases were made by first time buyers, suggesting the tablet market is not saturated just yet. He also added, “a whopping two-thirds of the Apple Watch buyers were new to the product. So, we’re still growing that base significantly.”
Apple’s board of directors has declared a cash dividend of $0.25 per share of the company’s common stock, payable on August 15, 2024, to shareholders of record as of August 12, 2024.
…developing, more to follow
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