We went by means of Apple CEO Tim Prepare dinner’s earnings name with traders on Thursday, and located some real surprises in the course of the dialogue of the monetary outcomes of the vacation 2024 quarter. We additionally turned up spectacular figures exhibiting simply how properly the corporate is doing.
Monetary particulars don’t need to be boring. Listed here are the excessive factors from the decision as shortly and as attention-grabbing as we will make them.
Highlights of Apple’s hour-long earnings name in simply 9 paragraphs
Apple surpasses 2.35 billion energetic units: The uncooked variety of Apple units presently in use boggles the thoughts. “Thanks to our incredible customer satisfaction and strong loyalty, our installed base of active devices reached an all-time high across all products and geographic segments, and is now over 2.35 billion active devices,” stated Apple’s new CFO Kevan Parekh. That’s roughly one Apple system for each 3.4 folks on the planet. — Lewis Wallace
Apple Intelligence shouldn’t be a bust: Apple Intelligence has typically been judged an enormous dud, however Apple stated it’s truly been driving gross sales of iPhone in areas the place it’s obtainable. “In the markets where we had launched Apple intelligence, they outperformed the markets that we did not,” Tim Prepare dinner stated on the decision. — Leander Kahney
Apple’s revenue engine is loopy: Apple’s capacity to make cash is gorgeous. Apple’s gross margins have been 46% for the quarter. As a basic rule, companies purpose for 10% to fifteen% gross margins, however some companies, like eating places, battle to make 5%. Any type of {hardware} is especially tough to make good margins from — and Apple’s capacity to make bushels of it’s fairly jaw-dropping. It’s helped massively by Apple’s Providers division, which reported $26 billion in revenues and 75% gross margins — 75%!!!!! — Leander Kahney
iPhone gross sales fell to “only” $69.1 billion: Lengthy considered by Wall Avenue as the important thing indicator of Apple’s success, iPhone revenues truly fell final quarter … to a measly $69.1 billion. Parekh dismissed the 0.8% drop, calling iPhone gross sales “roughly flat.” Nonetheless, Apple set an all-time document for iPhone upgraders and the energetic iPhone set up base. And Prepare dinner stated there’s “a lot of innovation left on the smartphone.” — Lewis Wallace
Mac income grew by leaps and bounds: With the assistance of the primary MacBook Professional mannequin with Apple’s M4 processor, income from Mac gross sales jumped a formidable 16% versus the identical quarter of the earlier 12 months to only underneath $9 billion. Is the expansion from upgraders or switchers? Each. “The M4 based products are so compelling that it’s driving both upgrades at the double digit level, and it’s driving switchers at a double digit level,” stated Apple’s CEO. — Ed Hardy
iPad gross sales are up, up, up: Apple is raking in cash from pill gross sales — $8.1 billion final quarter alone — however don’t give the slim new M4 iPad Professional with an OLED display the credit score. As Prepare dinner stated in the course of the name, “iPad overall grew 15% for the quarter, and it was more driven by iPad Air and the entry-level iPad than it was the top level iPad.” — Ed Hardy
iPad and Apple Watch are attracting tons of recent Apple customers: Gross sales of each iPad and Apple Watch have been significantly robust in the course of the quarter, and each merchandise attracted a number of prospects who’re new to Apple. Prepare dinner and co. stated greater than 50% of gross sales of each Apple Watch and iPad have been to new prospects, not upgraders. It quantities to a number of new Apple customers. — Leander Kahney
Providers rake in additional income than ever: Income from providers like Apple Pay and Apple TV+ grew 14% 12 months over 12 months to set a brand new document excessive. “In services, we achieved an all-time revenue record,” Prepare dinner stated. “And in the past year, we’ve seen nearly $100 billion in revenue from our services business.” With “well over a billion paid subscriptions,” providers gross margin hit an astonishing 75%, stated Parekh. — Lewis Wallace
India is Apple’s subsequent gigantic development market: Numerous Apple’s big development during the last 10 years or so got here from China, which has ballooned into one in all Apple’s largest geographical markets after the U.S. and Europe. The subsequent 10 years of development will probably come from India. “I’m particularly keen on India,” Prepare dinner stated in the course of the name. “The iPhone was the top-selling model in India for the quarter and it’s the second-largest smartphone market in the world and third-largest for PCs and tablets. It’s a huge market and we have very modest share in these markets and I think there’s lots of upside there.” — Leander Kahney
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