Apple announced its calendar Q1 2024 ending March 2024 earnings. They generated $90.8B revenue, $23.B net income and $1.53 EPS.
https://www.apple.com/newsroom/2024/05/apple-reports-second-quarter-results
https://www.apple.com/newsroom/pdfs/fy2024-q2/FY24_Q2_Consolidated_Financial_Statements.pdf
Earnings call transcript: https://seekingalpha.com/article/4688870-apple-inc-aapl-q2-2024-earnings-call-transcript
Apple increased its dividend 4% to $.25 and increase share buyback up to $110B and signaled their confidence in the business going forward. They based that optimism on customer loyalty and satisfaction.
Year over year, its revenue and net income both declined from April 1 2023, $94.836B and $24.160B. EPS is flat yoy. Revenue declined 4.3% yoy. Net income declined 2.1% yoy.
Drilling down by geography shows where the revenue drop is coming from. China, Japan and Rest of Asia decreased the most, dropping 8%, 12% and 17% yoy. Americas was down 1% and Europe was strongest with 0.7% gain.
| March 2024 | April 1 2023 | yoy | |
| Americas | 37.273 | 37.784 | -1.3% |
| Europe | 24.123 | 23.945 | 0.7% |
| Greater China | 16.372 | 17.812 | -8.0% |
| Japan | 6.262 | 7.176 | -12.7% |
| Reese of Asia Pacific | 6.723 | 8.119 | -17.2% |
By sales category, iPhone and iPad decreased. Mac had a slight gain. Services was strong. Apple’s biggest business the iPhone decreased -$5.37B or -10.5%. Accessories are related to iPhone sales also also $0.8B or -9.6%. Services, its second biggest segment is a bright spot and grew $2.96B or 14.2%. MAC grew slightly up $.283 or 3.9%. iPad is down $1.11B or -16.7%.
| March 2024 | April 1 2023 | yoy diff | yoy | |
| iPhone | 45.963 | 51.334 | -5.371 | -10.5% |
| Mac | 7.451 | 7.168 | .283 | 3.9% |
| iPad | 5.559 | 6.670 | -1.11 | -16.7% |
| Wearables, Home and Accessories | 7.913 | 8.757 | -0.844 | -9.6% |
| Services | 23.867 | 20.907 | 2.96 | 14.2% |
Tim Cook, Apple CEO explained why yoy comparison showed iPhone drop of $5.371B in the earnings call. He says that during December 2022 quarter there was COVID related supply disruption for iPhone 14 Pro and 14 Pro MAX. The demand got shifted to the April 2023 quarter and that quarter had an unusual bump of close to $5B in the April 2023 quarter. That $5B explains the drop in the yoy comparison for 2024.
In the call, Tim Cook discloses that Apple is working in integrating Generative AI to its products and will share that soon.