Apple’s Q3 2024: $21.4B Profit on $85.8B Revenue
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Apple on Thursday announced its third fiscal quarter 2024 (second calendar quarter) financial results. The Cupertino firm announced quarterly revenue of $85.8 billion, with a net quarterly profit of $21.4 billion ($1.40 per diluted share), compared to year-ago revenue of $81.8 billion and a net quarterly profit of $19.9 billion ($1.26 per diluted share), a year ago.
The gross margin for the third fiscal quarter was 46.3%, versus 44.5% in the year-ago quarter. Apple will pay a quarterly dividend payment of $0.25 per share, up from $0.24 per share. The dividend will be payable on August 15 to shareholders of record as of August 12.
New records were set for the June quarter for revenue and earnings per share. This was partially due to Apple’s Services category setting an all-time revenue record and the company’s iPad category, which saw an impressive increase in revenue due to the debut of its new iPad Pro and iPad Air releases.
“Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago,” said Tim Cook, Apple’s CEO. “During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. 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, while leading with the values that drive our work.”
“During the quarter, our record business performance generated EPS growth of 11 percent and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholders,” said Luca Maestri, Apple’s CFO. “We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty.”
Apple Fiscal Q3 2024 Earnings by Product Category
- Total revenue: $85.78 billion (up 4.87% YOY)
- Net income: $21.45 billion (up 7.89% YOY)
- iPhone: $39.30 billion (down 0.94% YOY)
- Mac: $7.01 billion (up 2.46% YOY)
- iPad: $7.16 billion (up 23.63% YOY)
- Wearables, Home, and Accessories: $8.10 billion (down 2.26% YOY)
- Services: $24.21 billion (up 14.14% YOY)
Not all of Apple’s earnings information is positive, though, as China continues to be a troubling market, as Greater China net sales fell 6.54% year-over-year (YOY) from $15.76 billion to $14.73 billion.
During the conference call that followed Apple’s earnings press release, Apple CEO Tim Cook and Apple CFO Luca Maestri answered questions from the journalists on the call.
The duo noted that the Mac installed base has reached an all-time high. Half of all MacBook Air customers in the quarter were new to the Mac platform. It was mentioned that Mac customer satisfaction was recently reported at 96% in the US.
They also admitted that it was too soon to tell when asked if they had seen a shift in demand for the iPhone 15 Pro and iPhone 15 Pro Max that could potentially foreshadow the demand for Apple Intelligence-enabled phones by consumers.
Also, nearly two-thirds of Apple Watch buyers in the fiscal third quarter were new to the Apple Watch. Customers reported satisfaction of 97% for the wearable in the United States.
As Apple has done for over four years, Apple is not issuing guidance for the current fiscal quarter, which ends in September.
