Key Metrics Highlights

• Revenue: Increased by 6% year-over-year to $94.9 billion, marking a September quarter record.
• iPhone Revenue: Achieved $46.2 billion, a 6% increase year-over-year, with growth in every geographic segment.
• Services Revenue: Set an all-time high of $25 billion, up 12% compared to the previous year.
• Mac Revenue: Rose to $7.7 billion, a 2% increase year-over-year.
• iPad Revenue: Climbed 8% year-over-year to $7 billion.
• Wearables, Home, and Accessories Revenue: Fell by 3% year-over-year to $9 billion.
• Gross Margin: Reached 46.2%, with Products gross margin at 36.3% and Services gross margin at 74%.
• Operating Expenses: Totaled $14.3 billion, aligning with guidance and increasing 6% year-over-year.
• Net Income (excluding a one-time tax charge): Was $25 billion with diluted earnings per share of $1.64, a 12% increase year-over-year.
• Operating Cash Flow: Strong at $26.8 billion, a new September quarter record.

Summary

Apple reported robust financial performance for Q4 Fiscal Year 2024, achieving a new September quarter revenue record of $94.9 billion, up 6% year-over-year. This was driven by significant contributions from iPhone sales, which topped $46.2 billion, marking a record for September. The company also set new records in Services with $25 billion, highlighting a 12% annual growth fueled by an expanded base of active devices and increased customer engagement. Furthermore, Apple witnessed growth in iPad sales at 8% year-over-year, and Mac sales increased by 2%. However, Wearables, Home, and Accessories experienced a 3% decline in revenue. Apple continues to innovate with product launches and features, including Apple Intelligence, which enhances the user experience across iPhones, iPads, and Macs. Strategic launches, such as Apple Vision Pro and advancements in AI technology, are creating platforms for sustained growth.

Takeaways

Apple is positioned well for future growth with its strategic focus on innovation and expanding service lines. The introduction of Apple Intelligence and ongoing advancements in product features and functionalities are expected to drive further customer engagement and retention. The continued expansion in markets like India and sustained growth in the Americas, Europe, and Asia Pacific strengthen Apple's global footprint. However, the decline in Wearables, Home, and Accessories highlights potential areas of concern that may need strategic focus. Additionally, tight supply management and strategic rollout of new features are critical as Apple navigates through global market challenges.

Q&A Highlights

• Tim Cook emphasized the strong interest and rapid adoption of Apple Intelligence, indicating a positive reception with iOS 18.1 downloads being twice as fast as the previous version.
• Discussions on capital expenditure highlighted investments to support Private Cloud Compute, with plans to continue necessary investments into FY25.
• The geographical diversity of revenue growth was noted, with strong performances in Europe and emerging markets, despite flat results from China due to improved foreign exchange impacts.
• Lead times for iPhone 16 are notably under better control, indicating healthier supply chain management compared to previous years.
• Apple Intelligence is being integrated across devices, opening opportunities for developers to create new user experiences.

Pending Questions

• How will Apple address the decline in Wearables, Home, and Accessories, and what strategies are in place to revitalize this segment?
• What specific plans does Apple have for expanding Apple Intelligence features across more languages and regions, and within what timeframe can this be expected?
• Could ongoing economic reviews and potential macroeconomic factors, such as tariffs, significantly affect Apple's operational and financial strategies moving forward?
• How will Apple leverage its Services segment to capture more of the market given the competitive landscape, particularly in areas like Apple Music and Arcade?