Apple shared a report for the first fiscal quarter of 2024 (corresponding to the fourth calendar quarter of 2023), where it reported revenue of $119.6 billion and net income of $33.9 billion (or $2.18 per share — 16% more than last year ).
Apple’s gross margin reached 45.9% – and this is the highest figure in the last 10 years.
Interesting fact: in 1997, Apple lost $1 billion, and today it receives $1 billion in revenue every 3 days.
Quarterly sales by category
- Selling iPhones brought in $69.7 billion (6% more than last year). This is the second best result in history — there was more only in the last quarter of 2021 ($71.63 billion).
- Income from services — $23.12 billion (11% more than last year). Services set an all-time revenue record with double-digit subscription growth every year. Currently, Apple has 2.2 billion active devices worldwide (2 billion in January 2023) — however, the company did not provide data by category (however, Apple has long had more than a billion active iPhones worldwide).
Overall, iPhones and services helped Apple return to growth last quarter after four consecutive quarters of declining sales.
- Mac – $7.8 billion (1% more than last year).
- iPad – $7.02 billion (25% drop). For the first time in the history of the product, Apple did not release a new iPad model in 2023.
- Wearables, home devices and accessories — $12 billion (11% less than last year).
- Other products (includes AirPods and Apple Watch) – $11.95 billion (11% decrease).
Sale in certain regions
Apple showed sales growth in all regions (records were recorded in Europe and the rest of the Asia-Pacific region), with the exception of Greater China. The company faced increased competition from local manufacturers such as Huawei.
In fact, many iPhone models were among the best-selling smartphones worldwide during the quarter. According to the Cantar survey, iPhones were 4 of the top 5 models in the US and Japan, 4 of the top 6 models in cities in China and the UK, and completely occupied the top 5 models in Australia.
Other interesting points from the report
Given the changes that Apple is making to the EU App Store (it’s about allowing third-party payments), you can expect some new economic results for the company. Tim Cook, meanwhile, says it’s impossible to predict yet. The EU accounts for about 7% of Apple’s global revenue.
Starting today (February 2), a new product – the Vision Pro headset – arrived at Apple stores in the USA. Apple CFO Luca Maestri said several major companies plan to develop separate apps for the headset (both for customers and employees), including Walmart, Nike, Vanguard, Stryker, Bloomberg and SAP. Earlier Mark Gurman of Bloomberg reported that more than 99% of the applications proposed for the headset are unmodified versions for the iPad.
In a recent report, analyst Ming-Chi Kuo predicted a 15% drop in iPhone shipments in 2024 — driven by lower demand in China and local customers’ desire to buy sophisticated phones focused on generative AI features. Tim Cook noted that Apple is spending an “extraordinary” amount of time and effort on artificial intelligence, but details of that work will be revealed later this year.
