Apple Earnings Up 4.9 Percent to $85.8 Billion

Apple reported that it earned a net income of $21.4 billion on $85.8 billion in the quarter ending June 29, 2024. Those figures represent year-over-year (YOY) gains of just 8.4 percent and 4.9 percent, respectively, due largely to a big drop-off of iPhone sales in China. But Apple still beat expectations.

“Today, Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago,” Apple CEO Tim Cook said. “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.”

The iPhone remains Apple’s biggest business, of course, but revenues fell slightly YOY to $39.3 billion (from $39.7 billion in the year-ago quarter). That was still enough to account for about 45 percent of Apple’s revenues directly. Apple didn’t break out the iPhone specifically, but overall revenues from China fell 6.5 percent to $14.7 billion in the quarter.

Apple’s Services business powered another $24.2 billion in revenues, up 14 percent. The Mac delivered $7 billion in revenues, up 2.5 YOY, suggesting a decent start for the MacBook Air M3. And the iPad surged by 23.7 percent to $7.2 billion in revenues, suggesting that the new iPad Pro and iPad Air models are a hit with customers. But Apple’s Wearables, Home, and Accessories business tripped up by 2.26 percent, falling to $8 billion in revenues.

Apple CFO Luca Maestri noted vaguely that the company’s “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.” But he didn’t provide a hard number.

And all eyes are on the next quarter and beyond as Apple rolls out new iPhones, OS upgrades for the iPhone, iPad, and Mac, and then, later and over time, its Apple Intelligence AI capabilities. The first batch of Apple Intelligence features are expected several weeks after the initial iPhone 16 and iOS 18 releases in September.