BTN News: In a revealing disclosure, Apple reported its fiscal third-quarter results for 2024, showcasing a blend of robust growth and notable challenges. Concluding on June 29, the Cupertino-based tech giant achieved quarterly revenues of $85.8 billion, marking a 5% increase compared to the previous year. Furthermore, earnings per diluted share saw an 11% rise, reaching $1.40.
Tim Cook, Apple’s CEO, emphasized the innovative strides the company has made, particularly highlighting the launch of Apple Intelligence at the Worldwide Developers Conference. Cook described Apple Intelligence as a groundbreaking personal intelligence system, embedding powerful generative AI models at the core of iPhones, iPads, and Macs. According to Cook, these tools are not only set to enhance user experience but also reflect Apple’s unwavering commitment to innovation.
Despite these advancements and exceeding Wall Street’s expectations, Apple faces headwinds in crucial market segments. iPhone revenues experienced a slight decline of 1%, totaling $39.3 billion. Additionally, revenue in China saw a significant drop of 6.5%. Nonetheless, other areas such as the iPad and Services, which include Apple TV+, Apple Music, Apple Fitness, and various other apps, demonstrated substantial growth. The iPad segment grew by 24%, while Services saw a 14% increase, indicating a diversified growth engine for the company.
Forbes has suggested that iPhone sales are anticipated to rebound later this year with the launch of the iPhone 16 and its generative AI operating system, which will be exclusive to newer devices. This prediction underscores the potential for recovery and growth in Apple’s flagship product line.
Apple’s CFO, Luca Maestri, expressed optimism about the company’s installed base of active devices, which reached a new all-time high across all geographic segments. This achievement is attributed to exceptionally high levels of customer satisfaction and loyalty. Maestri also provided financial projections for the upcoming quarter, forecasting operating expenses between $14.2 billion and $14.4 billion and a gross margin ranging from 45.5% to 46.5%.
In addition, Apple’s board of directors declared a cash dividend of $0.25 per share of common stock, payable on August 15, 2024, to shareholders of record as of the close of business on August 12, 2024.
Apple’s Q3 fiscal 2024 results highlight the company’s ability to drive significant growth despite facing market-specific challenges. The introduction of Apple Intelligence and the anticipated recovery in iPhone sales reflect the tech giant’s strategic focus on innovation and customer satisfaction. As the company navigates these challenges, its diverse revenue streams and loyal customer base continue to underpin its financial strength and market position.
