Home Apple Apple announces earnings for the first quarter of 2024: services do well, iPads collapse

Apple announces earnings for the first quarter of 2024: services do well, iPads collapse

by Andrew

Apple announced its financial results for its fiscal 2024 first quarter, which ended December 30, 2023. Beating analysts’ estimates compiled by Bloomberg, the Cupertino company reported quarterly revenue of $119.6 billion (estimated $117.97 billion), up 2% year-over-year, and quarterly earnings per diluted share of $2.18, up 16% from the same quarter in 2023.

Gross margin for the quarter was 45.9%, up from 43.0% in the year-ago quarter. Apple’s board of directors declared a cash dividend of $0.24 per common share. The dividend will be payable on February 15, 2024 to shareholders of record as of the close of business on February 12, 2024.

This is the comment of Tim Cook, the CEO of Apple:

“Today, Apple reports revenue growth for the December quarter, fueled by iPhone sales, and an all-time record revenue in the services industry. We are pleased to announce that our installed base of active devices has now surpassed 2.2 billion, reaching an all-time high across all products and geographic segments. And while customers will begin to experience the incredible Apple Vision Pro tomorrow, we are as committed as ever to groundbreaking innovations that align with our values and on behalf of our customers.”

As has been the case for over three years, Apple once again does not provide guidance for the current quarter ending in March. As far as iPhones are concerned, revenue came in at $69.7 billion, 6% more than in the same quarter a year ago. Macs generated $7.8 billion in revenue, a slight increase of 1% year-over-year.

EPS +16%: $2.18 (vs. $2.10 expected)
iPhone revenue +6%: $69.70 billion (vs. $67.96 billion expected)
Services Revenue +11%: $23.12 billion (vs. $23.31 billion expected)
Mac Revenue +1%: $7.78 billion (vs. $7.80 billion expected)
iPad Revenue -25%: $7.02 billion (vs. $7.31 billion expected)
Wearables, home and accessories revenue -11%: $11.95 billion (vs. $11.39 billion expected)

Since there were no new iPads in 2023, as expected, revenue fell 25% year-over-year to $7 billion. The Wearables, Home and Accessories division also declined to $12 billion, down 11% from the same quarter last year.

On the other hand, the Services division achieved a significant increase, reaching $23.1 billion, up 11% from $20.7 billion in the same quarter last year. Paid subscriptions grew by double digits year-over-year. Apple set an all-time revenue record in cloud advertising services, payment services, and video, along with quarter records for the App Store and AppleCare.

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