Apple has reported robust financial results for its fiscal third quarter of 2024, demonstrating resilience in the face of challenges. The tech giant’s revenue rose 4.9% year-over-year to $85.78 billion, surpassing the average analyst estimate of $84.53 billion. This performance was particularly impressive given the 1% decline in iPhone sales, which still managed to generate $39.3 billion in revenue.The company’s net profit saw a significant increase of 7.8% to $21.45 billion, or $1.40 per share, exceeding market expectations. This growth was largely driven by Apple’s services division, which includes offerings such as the App Store, Apple Music, and TV+. The services segment saw a 14% increase in revenue, reaching $24.21 billion.Apple CEO Tim Cook highlighted the company’s focus on artificial intelligence (AI) as a key driver of future growth. Cook stated, ‘We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives’. The company plans to introduce ‘Apple Intelligence’, a set of AI-powered functions, across its devices and applications.However, Apple faced challenges in the Chinese market, with revenue from Greater China falling 6.5% year-over-year to $14.73 billion. Despite this setback, Cook expressed confidence in the long-term opportunity in China, saying, ‘I don’t know how every chapter of the book reads, but we’re very confident in the long-term’.Interestingly, Apple’s iPad sales saw a surprising surge, increasing by 23.7% to $7.16 billion, defying analyst expectations of a decline. This growth, along with the strong performance in services, helped offset the slight dip in iPhone sales.Looking ahead, Apple is banking on its AI initiatives and the upcoming launch of the iPhone 16, which will feature Apple Intelligence, to drive future growth. As Jacob Bourne, an analyst at Emarketer, noted, ‘The company’s future success depends on two factors: keeping AI development costs low and ensuring that new AI-driven features compel price-sensitive consumers to upgrade their devices’.Meanwhile, Amazon also reported strong financial results for the second quarter of 2024, with a net profit of $13.5 billion. This performance was primarily driven by the growth of its cloud computing division, Amazon Web Services (AWS), which saw a 19% year-over-year increase in sales to $26.3 billion. However, Amazon’s total revenue of $148 billion, while representing a 10% increase from the previous year, fell short of analyst expectations, leading to a drop in the company’s stock price in after-hours trading.
Key points
- Apple’s Q3 2024 revenue rose 4.
- Apple’s services division saw 14% growth, reaching $24.
- The company is heavily investing in AI initiatives, including ‘Apple Intelligence’.
- iPad sales surprisingly surged by 23.
- Apple faced challenges in the Chinese market with a 6.
9% to $85.
78 billion, surpassing analyst expectations.
21 billion in revenue.
7%, while iPhone sales slightly declined.
5% revenue decline.
Contradictions👾While most sources reported a decline in iPhone sales, one article mentioned an increase in iPhone sales.
