Apple Inc. Quarterly Report for Q3 Ended Jun 29, 2024

Summary

Apple Inc. reported strong financial results for the fiscal third quarter ending June 29, 2024, demonstrating revenue growth driven primarily by its Services segment and improved performance in key product categories like iPad. Total net sales increased by 5% year-over-year to $85.8 billion, with Services revenue showing a significant 14% uplift. While iPhone sales remained relatively flat, the company saw substantial growth in iPad sales, particularly in the current quarter. Gross margin improved significantly to 46.3% from 44.5% in the prior year period, reflecting increased Services profitability and cost efficiencies in products. Net income rose to $21.4 billion, a 7.9% increase compared to the same quarter last year. For the first nine months of fiscal 2024, total net sales grew 1% to $296.1 billion, again propelled by a 13% increase in Services revenue. The company continues to execute its capital return program, repurchasing $70.0 billion of common stock and paying $11.4 billion in dividends year-to-date. Despite ongoing legal and regulatory scrutiny, particularly concerning the Digital Markets Act in Europe and antitrust lawsuits in the U.S., Apple's financial performance remains robust, underscoring the resilience of its business model and the continued demand for its ecosystem of products and services.

Key Highlights

• 1Total net sales increased 5% year-over-year to $85.8 billion in Q3 FY24.
• 2Services revenue grew 14% year-over-year to $24.2 billion in Q3 FY24.
• 3iPad sales saw a significant 24% increase year-over-year in Q3 FY24.
• 4Gross margin improved to 46.3% in Q3 FY24, up from 44.5% in Q3 FY23.
• 5Net income increased by 7.9% to $21.4 billion in Q3 FY24.
• 6Apple repurchased $26.0 billion of its common stock and paid $3.9 billion in dividends in Q3 FY24.
• 7Greater China net sales decreased by 7% year-over-year in Q3 FY24, primarily due to lower iPhone sales.

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