Apple Q3 2024 Earnings Summary $AAPL

In the latest episode, we dissect Apple’s Q3 2024 earnings call, where the tech giant reported a record revenue of $85.8 billion, a 5% increase year-over-year, and a diluted EPS growth of 11% to $1.40. CEO Tim Cook highlighted notable performance with all-time high services revenue at $24.2 billion, driven by robust subscription growth and the exciting introduction of Apple Intelligence, aiming to revolutionize user interaction through advanced AI. Despite slight declines in iPhone revenue, product launches like the iPad Pro invigorated overall sales, achieving a 2% increase in product revenue. CFO Luca Maestri outlined upcoming challenges with foreign exchange impacts but projected steady growth into the next quarter with double-digit gains in services. With an optimistic outlook and a quarterly dividend announcement, Apple’s strategic innovations signal a robust position in the market, making this a must-listen for discerning investors seeking insights on growth trends and upcoming opportunities.

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Apple reported Q3 2024 results with a new June quarter revenue record of $85.8 billion, marking a 5% increase year-over-year and exceeding expectations. The company also achieved a diluted earnings per share of $1.40, which reflects an 11% growth, setting a record for the June quarter.

CEO Tim Cook emphasized, “We set quarterly revenue records in over two dozen countries, including Canada, India, and Germany.” Notably, Apple’s services revenue reached an all-time high of $24.2 billion, up 14%, powered by paid subscriptions that are climbing to new heights. Cook highlighted Apple's commitment to artificial intelligence with the launch of Apple Intelligence, which aims to transform user interaction across devices. He stated, “We remain incredibly optimistic about the extraordinary possibilities of AI and its ability to enrich customers' lives.” The integration of ChatGPT is expected to enhance user experiences significantly.

CFO Luca Maestri added that product revenue was $61.6 billion, a 2% increase driven by enthusiasm for new launches like the iPad Pro and iPad Air. Despite challenges related to currency fluctuations, Maestri noted, “We achieved growth in the vast majority of our markets.” Additionally, he mentioned that Apple’s installed base reached an all-time high, reflecting unmatched customer satisfaction.

On specific product performance, iPhone revenue was recorded at $39.3 billion but saw a slight decline of 1% year-over-year. However, on a constant currency basis, it showed growth, with Cook noting, “Customer satisfaction on the iPhone 15 family continues to be extremely high.”

With regard to outlook, Maestri projected that the September quarter would see a revenue growth similar to that of the June quarter, expecting services revenue growth in the double digits. He stated, “We expect foreign exchange to continue to be a headwind and to have a negative impact on revenue of about 1.5 percentage points on a year-over-year basis.” Furthermore, he announced a cash dividend of $0.25 per share, payable on August 15, 2024.

In summary, Apple’s Q3 2024 results reflect solid growth, particularly in services and innovative technology, positioning the company favorably as it heads into the next quarter. Cook concluded with a motivation to continue investing in meaningful innovations that enrich customer lives, emphasizing the ongoing transformative potential of artificial intelligence within their ecosystem.