Apple Reports Third Quarter 2024 Financial Results

Apple reported revenue of $90.8 billion in the most recent quarter, down 4% year over year. The decline reflected weak iPhone sales in China, which were somewhat mitigated by growth in the company’s services business.

Today, Apple reported third-quarter financial results, with revenue of $85.8 billion, up 5% year over year.

According to Apple CEO Tim Cook:

Today, Apple is reporting a new record for June quarter revenue of $85.8 billion, up 5 percent year over year. This quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the center of iPhone, iPad and Mac. We can’t wait to bring these tools to our users, and we continue to invest significantly in innovations that enrich the lives of our customers, while being guided by the values ​​that drive our work.

Ahead of today’s earnings call, Reuters reported that analysts are expecting iPhone sales to decline by 2.2%, which is significantly less than the 10.5% decline in the previous quarter. The same report also explained that analysts expect the iPhone 16 to sell well this fall, which is partly due to upcoming AI features in iOS.

This fall will be an interesting one for the iPhone. Many of the Apple Intelligence features that were shown off at WWDC will likely not make it to the iPhone 16. This could have a negative impact on the iPhone 16 sales growth that analysts are expecting. However, with iOS 18.1 already in developer beta, I expect Apple will be able to deliver enough of the promised AI features to please Wall Street for the next quarter.