Apple right now held an earnings name for the third fiscal quarter of 2024 (second calendar quarter), with Apple reporting its greatest June quarter up to now, with income increased than anticipated. Apple CEO Tim Prepare dinner and Apple CFO Luca Maestri offered some perception into Apple’s efficiency, iPad gross sales, companies progress, AI plans, and extra.
We have highlighted essentially the most attention-grabbing tidbits from the Q3 2024 earnings name.
iPhone Efficiency
Apple CEO Tim Prepare dinner stated that the iPhone 15 fashions did higher than the iPhone 14 fashions. The set up base hit an all-time excessive through the June quarter.
As for the iPhone 16, Apple CEO Tim Prepare dinner stated that the corporate is “very excited” about Apple Intelligence and the extent of worth that Apple will present to customers. Prepare dinner stated that Apple Intelligence presents “another reason for a compelling upgrade.”
Apple Intelligence
On Apple Intelligence, Prepare dinner stated that Apple cannot wait to see what sort of wonderful issues builders do with Apple Intelligence. Prepare dinner expects that builders will undertake Apple Intelligence of their apps on a broad foundation, with options which might be relevant to many forms of apps.
He confirmed that Apple is planning a staggered rollout of the Apple Intelligence options. There are some features that may come over the course of the yr, and languages past U.S. English won’t be out there at launch.
ChatGPT integration with Siri is anticipated earlier than the top of the calendar yr.
Apple is investing extra in Synthetic Intelligence and Machine Studying, with plans to extend that on a yearly foundation.
iPad Gross sales
Apple noticed a pointy enhance in iPad gross sales because of the launch of the M4 iPad Professional and the M2 iPad Air through the quarter. iPad income was at $7.2 billion, up 24 % from $5.8 billion within the year-ago quarter.
Providers Income
Apple noticed a steep enhance in companies income at $24.2 billion, up from $21.2 billion a yr in the past and a brand new all-time income file. Paid subscriptions hit an all-time excessive, and Apple has multiple billion paid subscriptions throughout companies. Apple set new data in promoting, cloud, and fee companies.
Apple CFO Luca Maestri stated that Apple is seeing continued progress within the degree of engagement that prospects have with its ecosystem. Maestri additionally stated that Apple is doing a “very good job” bettering the standard of its companies and bettering the quantity of content material out there. Apple plans to proceed so as to add new Apple TV+ and Apple Arcade content material.
Different Product Income
iPhone income dropped one % ($39.3B), Mac income was up two % ($7B), and Residence, Equipment, and Wearables fell two % ($8.1B).
Digital Markets Act
Maestri stated that Apple is constant to debate its DMA compliance with the European Fee. Apple has seen “a good level of adoption” from builders on the adjustments, and usually, outcomes for the companies enterprise and for the App Retailer have been “pretty good until now.”
Maestri as soon as once more reiterated that the App Retailer is answerable for seven % of the full income that Apple earns within the European Union.
Prepare dinner stated that Apple is working to grasp the regulatory necessities it’s topic to earlier than introducing Apple Intelligence within the European Union. Apple Intelligence options won’t be out there within the EU when iOS 18, iPadOS 18, and macOS Sequoia launch.
September Quarter
Apple stated that it expects September quarter income to develop yr over yr at a charge just like the June quarter. Providers income is anticipated to develop double digits, just like the remainder of this yr. Gross margin is anticipated to be 45.5 and 46.6 %.
Mac can have a difficult examine from a yr in the past, based on Maestri, as there was the total quarter affect of the 15-inch MacBook Air in fall 2023. There have been rumors that we might see refreshed M4 MacBook Execs earlier than the top of the yr, but when Apple is anticipating Mac income to fall, that will not occur.