Apple reported stronger-than-expected earnings in Q3 2024, with overall revenue increasing by 5%

From CNBC: 2024-08-01 17:29:15

Apple CEO Tim Cook attended the annual developer conference where the company reported fiscal third-quarter earnings that exceeded Wall Street expectations, with overall revenue increasing by 5%. Despite beating estimates, Apple shares fell 1% in extended trading. The most significant business for Apple remains the iPhone, accounting for 46% of total sales.
Apple reported $21.45 billion in net income in the quarter, up from $19.88 billion the year prior. The iPad division showed the strongest growth, with sales up nearly 24% year-over-year. The Mac division also reported growth, with $7 billion in sales, up 2%. Wearables, Home, and Accessories sales declined by 2% to $8.10 billion.
The Services business is a crucial growth category for Apple, with sales up 14% to $24.21 billion. Apple now has 1 billion paid subscriptions, including those for iPhone apps through the App Store. Sales in the greater China region, which includes mainland China, Taiwan, and Hong Kong, declined by 6% to $14.72 billion.
Apple spent $32 billion on dividends and share repurchases in the quarter. Apple plans for similar overall revenue growth in the current quarter as the previous quarter, expects Services to grow by 14%, and projects operating expenditures between $14.2 and $14.4 billion for the September quarter. Tim Cook mentioned that there was an increase in spending for AI and Apple Intelligence during this quarter.



Read more at CNBC:: Apple (AAPL) earnings report Q3 2024