01—Abstract
Summary
Summary of the 10-K filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Apple Inc.'s 2024 10-K filing reveals a year of modest revenue growth, with total net sales increasing by 2% to $391 billiona, primarily driven by a 13% surge in Services revenue.
While iPhone sales remained flat year-over-year, the strong performance in Services, including advertising, App Store, and cloud services, helped offset softer sales in Wearables, Home, and Accessories, and a decline in iPad revenue. The company continues to invest heavily in research and development, signaling a commitment to innovation and future product pipelines, as evidenced by the introduction of Apple Intelligence and new hardware iterations. Despite macroeconomic headwinds and intense competition, Apple maintains a robust financial position, with substantial cash reserves and a commitment to returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Total net sales increased by 2% to $391 billion, driven by a 13% growth in Services revenue.
- iPhone sales remained relatively flat year-over-year, indicating a mature but stable product line.
- Greater China region experienced an 8% decline in net sales, influenced by lower iPhone and iPad sales and unfavorable currency exchange rates.
- Investments in Research and Development increased by 5% to $31.37 billion, reflecting a continued focus on innovation.
- Apple recorded a significant one-time income tax charge of $10.2 billion related to the European Commission's State Aid Decision, impacting net income but not underlying operational performance.
- The company maintained a strong liquidity position with $140.8 billion in unrestricted cash, cash equivalents, and marketable securities as of September 28, 2024.
- Apple returned $95.0 billion to shareholders through share repurchases and $15.2 billion in dividends during fiscal year 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Apple Inc. kept $0.24.
- Revenue$391.04B100.0%
- Cost of revenue−$210.35B53.8%
- Gross profit$180.68B46.2%
- Operating costs−$57.47B14.7%
- Operating income$123.22B31.5%
- Interest, other & tax−$29.48B7.5%
- Net income$93.74B24.0%
Where FY2024 revenue went
$391.04B- Cost of revenue: $210.35B, 54% of revenue
- Net income: $93.74B, 24% of revenue
- R&D: $31.37B, 8.0% of revenue
- SG&A: $26.10B, 6.7% of revenue
- Interest, other & tax: $29.48B, 7.5% of revenue
Kept 24% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed November 1, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $391.04B$383.29B | +2.0% |
| Cost of Revenue | $210.35B$214.14B | −1.8% |
| Gross Profit | $180.68B$169.15B | +6.8% |
| R&D Expenses | $31.37B$29.91B | +4.9% |
| SG&A Expenses | $26.10B$24.93B | +4.7% |
| Operating Expenses | $57.47B$54.85B | +4.8% |
| Operating Income | $123.22B$114.30B | +7.8% |
| Net Income | $93.74B$97.00B | −3.4% |
| EPS (Basic) | $6.11$6.16 | −0.8% |
| EPS (Diluted) | $6.08$6.13 | −0.8% |
| Shares Outstanding (Basic) | 15.34B15.74B | −2.5% |
| Shares Outstanding (Diluted) | 15.41B15.81B | −2.6% |
05—Questions
Frequently Asked Questions
What were the main drivers of Apple's revenue growth in fiscal year 2024?
Apple's revenue growth in fiscal year 2024 was primarily driven by a strong performance in its Services segment, which saw a 13% increase in net sales. This growth was particularly boosted by advertising, the App Store, and cloud services. While iPhone sales remained flat, the robust expansion of the Services portfolio played a crucial role in offsetting declines in other hardware categories like iPad and Wearables, Home, and Accessories.
How did the European Commission's State Aid Decision impact Apple's financial results?
The European Court of Justice's confirmation of the Commission's State Aid Decision led to a significant one-time income tax charge of $10.2 billion for Apple in the fourth quarter of fiscal year 2024. This charge relates to the repayment of additional taxes to Ireland. While this impacted net income for the period, it does not reflect the ongoing operational performance of the business.
What are the key risks highlighted in the 10-K filing that investors should be aware of?
The filing highlights several key risks including macroeconomic uncertainties such as inflation and interest rate fluctuations, intense competition in the tech industry, reliance on global supply chains and outsourcing partners (particularly in Asia), geopolitical tensions affecting trade and operations, potential for product defects and cybersecurity threats, and significant legal and regulatory challenges. Notably, ongoing antitrust investigations in various jurisdictions, including the U.S. and EU, pose a notable risk that could lead to substantial fines and require changes to business practices.
How is Apple managing its capital and returning value to shareholders?
Apple continues to actively manage its capital and return value to shareholders. As of September 28, 2024, the company held $140.8 billion in unrestricted cash, cash equivalents, and marketable securities. In fiscal year 2024, Apple repurchased approximately $95.0 billion of its common stock and paid $15.2 billion in dividends. The company announced a new share repurchase program of up to $110 billion in May 2024 and intends to increase its quarterly dividend annually.
06—Continue