Apple’s Q1 2024 Results: What You Need to Know
Apple has just announced its financial results for the first quarter of fiscal year 2024, which ended on December 30, 2023. The company reported revenue of $119.6 billion, up 2% year over year, and earnings per share of $2.18, up 16% year over year. These numbers beat the analysts’ expectations of $117.91 billion in revenue and $2.01 in earnings per share.
So what do these numbers mean for Apple and its customers?
Here are some key takeaways from the earnings report and the conference call:
iPhone sales drove the revenue growth. Apple sold 87.4 million iPhones in the quarter, up 3% year over year, and generated $69.8 billion in revenue from the iPhone segment, up 4% year over year. The iPhone 15 and iPhone 15 Pro models, which launched in September 2023, were the main contributors to the strong performance, as customers were attracted by the improved cameras, displays, and battery life. Apple also benefited from the continued demand for the iPhone 12 and iPhone SE models, which offered lower price points and 5G connectivity.
Services revenue reached a new all-time record. Apple’s services segment, which includes the App Store, Apple Music, Apple TV+, iCloud, Apple Pay, and more, generated 2.3 billion in revenue in the quarter, up 14% year over year. This was the highest quarterly revenue ever for the services segment, and it represented 19% of Apple’s total revenue. Apple attributed the growth to the increased number of paid subscriptions, which reached over 800 million across its services. Apple also highlighted the success of its Apple One bundle, which offers customers access to multiple services at a discounted price.
Apple Vision Pro launched to positive reviews. Apple’s first augmented reality headset, the Apple Vision Pro, became available for pre-order on January 19, 2024, and started shipping to customers on February 1, 2024. The device offers a high-resolution display, advanced sensors, and a sleek design. It also integrates with the iPhone and other Apple devices, allowing users to access apps, games, and content in an immersive way. Apple said that the initial response to the Vision Pro was very positive, and that it had sold approximately 200,000 units in the first 10 days. The company also said that it was working with developers to create more apps and experiences for the Vision Pro platform.
Apple’s installed base of active devices reached a new high. Apple revealed that its installed base of active devices, which includes iPhones, iPads, Macs, Apple Watches, Apple TVs, and iPods, had surpassed 2.2 billion, reaching an all-time high across all products and geographic segments. This means that more than a quarter of the world’s population owns at least one Apple device. Apple said that this was a testament to the loyalty and satisfaction of its customers, and that it would continue to provide them with innovative products and services.
Apple’s Q1 2024 results showed that the company is still growing and thriving, despite the challenges posed by the COVID-19 pandemic, the global chip shortage, and the competitive landscape. Apple’s CEO Tim Cook said that he was proud of the team’s achievements, and that he was optimistic about the future. He also said that Apple was committed to its values of privacy, security, environmental responsibility, and social justice.
Apple did not provide any guidance for the next quarter, citing the uncertainty and volatility of the current situation. However, analysts expect that Apple will continue to perform well, driven by the strong demand for its products and services, especially the iPhone 15 and the Vision Pro.
