Apple's Q2 2024 earnings report is here!

If you forgot, May 2 was the day of the Q2 2024 (January-March 2024) earnings report, and now that the day has passed, it's time to talk about what came with the earnings report.

First and most importantly, revenue. It has dropped 4.31% YoY from $94.8 billion, with a figure of $90.75 billion, but at least it's noticeably over market expectations of $90.33 billion. Apple's excuse for lower revenue switches the subject to Q2 2023's earnings by saying it got $5 billion extra then from late 2022's Foxconn Covid shutdown delaying purchases. The $90.75 billion figure breaks down into $45.96 billion in iPhone revenue (a staggering -10.46% YoY), $23.87 billion (another staggering number of +14.2%) for Services (a category that has in general been rising since the start of FY2023 and is now at a record high for the sixth quarter in a row), $7.91 billion for Wearables, Home & Accessories (even though the Vision Pro was released halfway through the quarter, the change is still -9.7% YoY), $7.45 billion for Mac revenue (Mac is one of the positive spots this quarter: it has an increase of 3.9% YoY), and finally iPad with $5.56 billion (down a whopping 16.64% YoY).

Talking about more than just revenue, profit has declined 2.15% to $23.64 billion. The EPS is also at an astonishing record high of $1.53 as well. The quarter was the first to include Vision Pro sales, but only in the US, and as I said earlier, it was released halfway through the quarter. It was also the first to fully include sales of the M3 MacBook Pro and iMac, and the first to include any sales of the M3 MacBook Air. Also, here comes yet another teaser for new announcements in AI, this time saying that some announcements will come at Let Loose (can't wait!!!). Another thing Cook said in the earnings call is that 1/2 of all companies in the Fortune 500 have bought 1 or more Vision Pros, and that Cook is "hearing about so many of them", so much that there isn't a way to show which is the biggest.

To quote Cook before the earnings call, "Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services," and "During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us."

To quote CFO Luca Maestri before the earnings call, "Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter,” and "Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $110 billion for share repurchases. We are also raising our quarterly dividend for the twelfth year in a row.”

By Leo