Apple has reported strong financial results for its third fiscal quarter of 2024, surpassing analyst expectations and demonstrating resilience in a competitive market. The tech giant posted revenue of $85.78 billion, a 5% increase year-over-year, beating the consensus estimate of $84.5 billion. Net profit rose to $21.45 billion, an 8% increase from the same period last year.Despite concerns over iPhone sales, the company’s flagship product performed better than expected. iPhone revenue came in at $39.3 billion, a slight 0.9% decline year-over-year but above the anticipated 2.2% drop. This performance suggests a stabilization in iPhone demand, with Apple’s CFO Luca Maestri noting that the iPhone 15 series has been well-received and is outperforming its predecessor.Apple’s services division, which includes offerings like the App Store, Apple Music, and Apple TV+, continued its strong growth trajectory. Services revenue hit $24.2 billion, a 14% increase year-over-year, exceeding analyst expectations. This growth underscores the increasing importance of Apple’s ecosystem in driving recurring revenue.The company saw a significant rebound in iPad sales, which increased by 23.7% to $7.16 billion. Mac sales also showed modest growth, rising 2.5% to $7.01 billion. However, the wearables segment, including Apple Watch and AirPods, experienced a slight decline of 2.2% to $8.1 billion.While Apple’s overall performance was strong, sales in China remained a point of concern. Revenue from the Greater China region fell by 6.5% to $14.73 billion, more than the expected 2.4% decline. Apple’s CEO Tim Cook attributed some of this decline to currency fluctuations and emphasized the company’s long-term confidence in the Chinese market.Looking ahead, Apple is betting on its upcoming AI features, dubbed Apple Intelligence, to drive future growth. Set to launch this fall, these AI-powered tools are expected to be integrated into iPhones, iPads, and Macs. As Tim Cook stated, ‘We’re excited to share these tools with our users, and we continue to invest significantly in innovations that will enrich the lives of our customers’.Apple’s stock price rose slightly in after-hours trading following the earnings release, reflecting investor optimism about the company’s performance and future prospects. With its consistent growth, strong services performance, and upcoming AI initiatives, Apple continues to demonstrate its ability to navigate challenges and capitalize on new opportunities in the tech landscape.
Key points
- Apple’s Q3 revenue reached $85.
- iPhone sales declined slightly but performed better than expected, while services revenue grew by 14%.
- iPad sales rebounded strongly with a 23.
- Sales in China declined by 6.
- Apple is betting on upcoming AI features, Apple Intelligence, to drive future growth.
78 billion, a 5% year-over-year increase, beating analyst expectations.
7% increase.
5%, remaining a concern for the company.
Contradictionsđź‘ľWhile most sources reported positive sentiment about Apple’s performance, there were slight discrepancies in the exact figures reported for various segments, likely due to rounding or different calculation methods used by different sources.
