Market Insights

Apple reported Q3 2024 results on August 1, revealing a new June quarter revenue record of $85.8 billion, marking a 5 percent increase from the previous year. The earnings per share rose to $1.40, achieving a record for the June quarter as well. CEO Tim Cook expressed enthusiasm, stating, “We set quarterly revenue records in more than two dozen countries and regions.”

The growth was primarily fueled by strong performance in services, which climbed to $24.2 billion, up 14 percent year-over-year. Cook highlighted the launch of “Apple Intelligence,” a transformative AI framework, which promises to enhance how users interact with Apple devices. He described it as “built on a foundation of privacy” and noted the integration of ChatGPT into various experiences, emphasizing, “We remain incredibly optimistic about the extraordinary possibilities of AI.”

In terms of product lines, iPhone revenue stood at $39.3 billion, slightly down 1 percent year-over-year, though it grew on a constant currency basis. Cook noted, “Customers continue to praise the iPhone 15 lineup for its incredible battery life, exceptional cameras, and unmatched power.” He also mentioned significant consumer satisfaction ratings for the iPhone at 98 percent.

Mac revenue increased 2 percent to $7 billion, driven by strong sales of the latest M3-powered MacBook Air. Meanwhile, iPad revenue surged 24 percent to $7.2 billion, propelled by new launches. Cook remarked, “The latest iPad lineup for its new design and unparalleled performance” has resonated well with consumers.

CFO Luca Maestri elaborated on the financials, stating that the active installed base of devices reached an all-time high, which, along with high customer satisfaction, has underpinned robust demand. He said, “We achieved growth in the vast majority of our markets, with June quarter revenue records in the Americas, Europe, and rest of Asia Pacific.”

Looking ahead, Apple anticipates continued growth, albeit with challenges, including foreign exchange headwinds estimated at a 1.5 percent impact on revenue. Maestri forecasted, “We expect total company revenue to grow year-over-year at a rate similar to the June quarter.” He also underlined their commitment to returning value to shareholders, returning over $32 billion in the last quarter.

In closing, Cook reinforced Apple's dedication to innovation, stating, “We believe fundamentally that the best technology is technology that works for everyone.” This perspective sets the stage as Apple navigates through the competitive tech landscape while driving robust growth against a backdrop of evolving consumer needs.

The call wrapped up with analysts eager to explore the potential of Apple’s AI advancements and how they may reshape future product demand.