Apple has reported record revenues for the fiscal third quarter of 2024, achieving $85.78 billion in revenue, a 5% increase year-over-year, and surpassing analysts’ expectations. Despite stagnant iPhone sales, which saw a slight decline to $39.3 billion, Apple’s overall performance was bolstered by significant growth in its Services segment, reaching $24.21 billion, and iPad sales, which surged by 23.6% to $7.16 billion. The company also faced a decline in sales in China, down 6.5% year-over-year .
CEO Tim Cook highlighted the successful updates to Apple’s software platforms and ongoing investments in innovation, while CFO Luca Maestri noted the strong customer loyalty and satisfaction that contributed to the company’s performance. Despite the challenges in certain segments, Apple’s diverse product lineup and services have driven its financial success this quarter .
When Apple released its third-quarter profit reports for the 2024 fiscal year, it exceeded investors’ highest expectations by growing by 5% year over year. The company’s $85.8 billion in revenue for the third quarter set a record.
Even with that increase, a few significant factors that worried investors—China’s total iPhone sales and revenue—started to decline, and Apple’s shares began to decline in after-hours trade.
China’s revenue for Apple dropped to $14.7 billion, a 6.3% decrease from the previous year due to strong competition from Huawei and other smartphone makers. During the investor call, CEO Tim Cook stated that iPhone models continue to be the best-selling devices “in urban China.”
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As a whole, the iphone From $39.67 billion in the same quarter last year to $39.30 billion this year, the iPhone business decreased little. Among the company’s other offerings, the iPhone has the lowest percentage of sales as a whole as it has for the past nearly four years.
How then did the business manage to generate five percent of total revenue? That was fueled in large part by significant increases in iPad revenue as well as services.
Customers appeared to respond well to Apple’s significant new iPad improvements in Q3 2024, as seen by the device’s revenue increase of nearly 24% to $7.16 billion.
The services sector, which includes products like Apple TV+ and Apple Music, saw a 14% increase, maintaining the company’s upward trend.
“Wearables, Home, and Accessories” is another product category that includes Among other items, the Mac had a 2 percent increase in sales to approximately $7 billion during the quarter, while AirPods and the Apple Watch saw a 2 percent decline in sales to $8.1 billion.
Although a sizable portion of purchasers of the iPad and Apple Watch this quarter were first-time owners of respective gadget categories, Apple was cautious to point out that this suggests the market is not yet saturated for either product.
During the earnings call, Cook devoted much of his remarks to promoting Apple Intelligence, the collection of generative AI technologies that will be included in iOS 18.1 this autumn. It was initially introduced by the business earlier in the quarter at WWDC 2024.