Apple reports its financial results for the fiscal quarter ending in March 2024, showing a decrease in overall revenue compared to the same quarter in the previous year, in line with previous expectations, particularly due to a significant decline in iPhone sales in China.
Key figures in the financial report include:
– Total revenue of $90.753 billion, a 4% decrease
– Net profit of $23.636 billion, a 2% decrease
– Total sales in China of $16.372 billion, an 8% decrease
– iPhone sales of $45.963 billion, a 10% decrease
– Services group revenue of $23.867 billion, a 14% increase reaching a new record for the quarter
– Mac sales increased by 4%, while iPad sales decreased by 17%, and Wearables, Home, and Accessories group sales decreased by 10%.
Apple’s board also approved an increase in shareholder dividends, raising the quarterly dividend to $0.25 per share, effective starting May, and increasing the stock buyback program by an additional $110 billion.
During the earnings call with analysts, CEO Tim Cook and CFO Luca Maestri addressed additional points:
Tim Cook mentioned that the decline in iPhone sales was due to high comparables from the previous year, as supply constraints impacted production in the previous quarter. Excluding these factors, iPhone sales saw an increase.
In China, the iPhone 15 and iPhone 15 Pro Max remained the top-selling smartphones compared to other brands.
Information on the impact of changes following EU regulations could not be provided at this time as it is still too early.
Countries with high growth potential in the future were discussed, including India, Saudi Arabia, Mexico, Turkey, and Indonesia.
The discussion also touched on the trend of Generative AI, with Apple seeing promising developments in this area and planning to introduce new offerings to customers soon. Apple believes that GenAI will differentiate the company in the future as it combines hardware, software, and services, with a focus on user privacy.
TLDR: Apple’s financial report for Q1 2024 showed a decline in revenue, primarily driven by decreased iPhone sales in China. The company also increased shareholder dividends and discussed potential growth markets and their investments in Generative AI.
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