iPhone, iPad and Services revenue top forecasts as Apple reports a solid fiscal Q3
Apple announced its fiscal third-quarter earnings results this afternoon and while iPhone sales declined by less than 1% to $39.30 billion for the quarter, the results topped Wall Street expectations of $38.81 billion. The device made up 46% of Apple's total revenue from April through June. The release during the quarter of the first OLED iPads (11-inch and 13-inch iPad Pro powered by the M4 chip) and two iPad Air models (including a new 13-inch unit) helped iPad sales soar 24% during the quarter to $7.16 billion, beating estimates.
Apple's second-largest business unit, Services, reported a 14.1% year-over-year gain in revenue to $24.21 billion in revenue just barely beating the $24.01 billion figure estimated by Wall Street analysts. The Wearables, Home and Accessories segment saw revenue decline from $8.28 billion during the fiscal third quarter of 2023 to $8.1 billion this past quarter which works out to a 2.2% annual decline. This unit includes the Apple Watch, HomePod models, and AirPods.
"Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago. During the quarter,we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work."-Tim Cook, Apple CEO
Apple saw increases in revenue from every region except for Greater China. Business in the Americas rose 6.5% from $35.38 billion last year to $37.68 billion. In Europe, revenue came to $21.88 billion from $20.21 billion for an 8.3% increase. Sales rose in Japan and the rest of Asia Pacific. Revenue from China declined 6.5% to $14.73 billion.
For the fiscal third quarter, Apple's total revenue was $85.78 billion, a 4.9% year-over-year increase from the $81.80 billion in revenue reported for the fiscal third quarter last year. It also topped Wall Street's forecast of $84.53 billion. Net income, at $21.45 billion, beat out the $19.88 billion in net that Apple had during last year's fiscal Q3. This works out to a 7.9% annual increase in net. Earnings per share of $1.40 easily beat the $1.35 that Wall Street was looking for and the $1.26 in diluted earnings per share Apple announced for the same quarter a year ago. The annual increase in earnings per share was 11.1%.
During the regular trading session in New York prior to the release of the report, Apple's shares lost $3.72 or 1.68% to $218.36. After the release of the report, investors acted indifferent with the stock falling another 41 cents (or .19%) to $217.95.
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