Apple reports Q1 revenue up 2% YoY to $119.6B, net income up 13% to $33.9B, Americas net sales up 2% to $50.4B, and Europe net sales up 10% to $30.4B

Services revenue reaches new all-time record EPS up 16 percent to new all-time high — Apple® today announced financial results …

Apple 2024-02-02

Context & Ripple Effects

Apple entered this quarter after a slight year-over-year revenue decline in the prior quarter, even as profit had risen. The return to top-line growth, alongside a record in Services, makes the result more than a cost-driven earnings improvement.

The regional picture is uneven but constructive: Europe grew faster than the Americas. Later coverage of faster revenue growth in the following reported quarter suggests this quarter marked an early improvement in the growth trajectory rather than an isolated profit event.

First-order effects

Apple posts renewed revenue growth while net income and EPS grow materially faster, improving the immediate earnings profile for shareholders.
Record Services revenue adds a higher-value recurring revenue stream alongside product sales, while Europe becomes the stronger reported regional growth contributor.

Second-order effects

A growing Services contribution can reduce the company’s dependence on unit-driven hardware growth and raises the importance of monetizing its installed device base.
The gap between European and Americas growth gives Apple a reason to focus commercial execution on regions showing stronger momentum, while preserving its much larger Americas sales base.

Third-order effects

If Services continues to outgrow the overall business, Apple’s financial model will increasingly be judged on revenue generated per active device rather than on hardware-cycle growth alone.
The pattern points toward a more diversified consumer-device platform model, though the available results do not establish whether regional growth or Services strength will persist.

The trend: Apple’s results are one data point in the shift from hardware-led sales cycles toward monetizing large installed device bases through recurring services.

Discussion

@asymco@mastodon.social @asymco@mastodon.social on mastodon
Only soft spot in the entire report is China sales down about 12%. iPad looks weak but no new products there. The Mac stabilized. The iPhone is doing amazing.
@epro.social Emil Protalinski on bluesky
$AAPL Q1 2024 — Revenue up 2% to $119.6 billion — Net income up 13% to $33.9 billion — iPhone revenue up 6% — Mac revenue up 1% — iPad revenue down 25% — Wearables/Home/Accessories revenue down 11% — Services revenue up 11% [embedded post]
@thetranscript_ @thetranscript_ on x
Apple double beat. CEO: “...revenue growth for the December quarter fueled by iPhone sales & an all-time revenue record in Services CFO: “During the quarter, we generated nearly $40B of operating cash flow, and returned almost $27B to our shareholders” $AAPL: -2.2% AH [image]
@appleinsider @appleinsider on x
Apple CEO Tim Cook says there isn't any intention to license Masimo's blood oxygen detection to end the Apple Watch import ban. #Apple #AppleWatch By @hillitech https://appleinsider.com/...
@markgurman Mark Gurman on x
Tim Cook confirms Apple's big AI announcement is happening later this year. Here are the details: https://www.bloomberg.com/...
@markgurman Mark Gurman on x
Very important new data point from Apple CFO: European Union represents only 7% of App Store revenue. So there's your answer on why Apple isn't expanding the changes to other markets (unless they are forced to).
@inafried Ina Fried on x
Apple earnings top estimates thanks to higher profit margins. Revenue was up everywhere in the world, except Greater China. https://www.axios.com/...
@tomwarren Tom Warren on x
Apple Q1 2024 earnings are out: 📱 iPhone revenue up 6% 💻 Mac revenue flat 📑 iPad revenue down 25% ⌚ wearable revenue down 11% ☁️ services revenue up 11% story to come: https://www.theverge.com/ [image]
@florian4gamers Florian Mueller on x
“all-time revenue record in Services” => that means primarily the infamous app tax, secondarily stuff like Apple Music that benefits from the fact they disadvantage competitors. Serves to explain why they're prepared to duke it out in court with the EU if need be over the DMA.
@lexnfx Alexei Oreskovic on x
Tim Cook teasing an AI announcement later this year: We're excited to share the details of our ongoing work in this space later this year
@cfarivar @cfarivar on x
Apple made $34B in profit in Q4 2023.
@bryanbma Bryan Ma on x
Several mentions by Apple on its earnings call about its strong performance in India and Indonesia. Aligns with a lot of the activity we're seeing on our side.
@neilcybart Neil Cybart on x
Tim Cook: We have been in China for 30 years. I remain very optimistic about China over the long term. I feel good about hitting a new installed base record in China and growth in upgraders.
@jerrycap @jerrycap on x
Meta and Amazon out here growing a million percent while Apple analysts grab their magnifying glasses and adjust for 13 weeks to see any growth ! [image]
@munster_gene Gene Munster on x
Bingo! Tim Cook used the letters “AI” in prepared remarks for the first time, saying AI is important to Apple's future...He added that they don't have anything more to say today, but will have more to say later this year...
@inafried Ina Fried on x
Update: Apple teased some announcements to come on the AI front in a conference call with analysts, with CEO Tim Cook noting Apple continues to work and invest in AI and adding “we're excited to share the details of our ongoing work in that space later this year.”
@fjeronimo Francisco Jeronimo on x
The AI iPhone is coming this year 💥 “As we look ahead we will continue to invest in other technologies. That includes AI [...] and we are excited to share the details of our ongoing work in that space later this year” says @tim_cook #AAPL [image]
@stockmktnewz Evan on x
Apple $AAPL CEO Tim Cook just said there's a huge opportunity for Apple with Generative AI and AI in general [image]
@dee_bosa Deirdre Bosa on x
Tim Cook finally says “AI” Watch this for Apple's AI strategy and how it could be the dark horse in the race $aapl https://www.youtube.com/...
@quinnypig Corey Quinn on x
“Sorry, I can't find the song ‘Dependas Amount’ by Affront,” replies Siri.
@minimaxir Max Woolf on x
Finally, robo Steve Jobs
@stockmktnewz Evan on x
Apple $AAPL CEO Tim Cook went from never saying the word “AI” to now saying the word “AI” multiple times on this earnings call Feels like Apple is getting closer with its AI features 👀
@paulroetzer Paul Roetzer on x
Apple and Tim Cook actually said “AI.” Didn't think I'd see the day. Here we go! “Let me just say that I think there's a huge opportunity for Apple with generative AI and with AI, without getting into many more details or getting out ahead of myself.”
@neilcybart Neil Cybart on x
Could also explain the technical difficulties in the beginning. Apple may be doing this call from different locations and Cook's connection may have been acting up.
@munster_gene Gene Munster on x
Now that I've had time to process $AAPL guidance, I expect revenue to be down 5% YoY in Mar-24. If not for FX, revenue would be down 3%. Previously the Street had expected revenue to be up 1%. What Apple is saying is last years Mar-23 quarter had a $5B benefit from sales that...
@teroterotero Tero Kuittinen on x
@StealthQE4 The -13% revenue collapse in China shocked the market... Apple is on a road to perdition in the very market that was supposed to be the engine of its global growth. The naked hostility Chinese government has towards Apple will snap the company's growth this summer
@markgurman Mark Gurman on x
Apple reported better sales than projected in the holiday quarter, snapping a yearlong slump, after strong iPhone sales around the world helped make up for weakness in China. https://www.bloomberg.com/...
@neilcybart Neil Cybart on x
Apple is on track to eventually report 50% gross margins on a companywide basis. It was ~38% not that long ago. Consensus thought margins would fall to more like 20% to 25% due to competition. If you are looking for big picture Apple financial stories, you have a rather large one…
@emilychangtv Emily Chang on x
Just spoke w Apple CFO Luca Maestri: On China: “We are not happy with the decline but we know China is the most competitive market in the world... We continue to see significant opportunity for us in China in the long-term.”🇨🇳 He said the iPhone did not decline as much as other..…
@caro_milanesi Carolina Milanesi on x
I told you back in June that Apple is very keen on establishing Vision Pro as an enterprise device. Luca Maestri just said: “From everyday productivity to collaborative product design to immersive training, we cannot wait to see the amazing things our enterprise customers we...
@munster_gene Gene Munster on x
An important point is getting missed in the $AAPL reaction. The base of active devices is now 2.2 billion, up 10% from 2022. Last year it grew at 11%. Similar growth off of a higher base is impressive. They did this while revenue over the past year was down slightly. A...
@teroterotero Tero Kuittinen on x
Greater China -13% revenue crash... there is no future for Apple in China. The global growth dream is dead.
@benbajarin Ben Bajarin on x
This is exactly right. There was no hint of a $5b sell in boost to iPhones last March Q. So that is news to everyone, and a major reason for the $$ decline even though YoY revenue is likely flat.
@benbajarin Ben Bajarin on x
Happy to provide some commentary with @OJRenick on $aapl for @SchwabNetwork. No new iPad's in 2023 clearly hurt but Macs being down was a surprise. Watch FQ1 for China to likley look more upbeat.
@neilcybart Neil Cybart on x
One day ahead of Apple Vision Pro, Tim Cook is sounding extra confident on this earnings call. He has sounded more subdued on some prior calls. Not this one.
@munster_gene Gene Munster on x
$AAPL beat revenue by 2% and China slowed, stock down 2%. China was down 13%. It would have been down around 7% factoring in FX. Most of the Street was expecting it to be down around 5%. China was down 2.5% in Sep-23.
@neilcybart Neil Cybart on x
Just a random musing: Tim Cook sounds like he's on this call remote - in a room that isn't built for earnings calls. My suspicion is he's in NYC for the Vision Pro launch.
@neilcybart Neil Cybart on x
Apple FY1Q24 earnings are out. - $119.6 billion of revenue - $2.18 EPS My estimates: - $118.4 billion of revenue - $2.17 EPS Consensus (sell-side analysts): - $117.9 billion of revenue - $2.10 EPS
@neilcybart Neil Cybart on x
Apple 2Q24 Guidance Margin - Very strong. Revenue - Sounded like it will be weaker versus my model but will need to take a deeper look to confirm.
r/apple r on reddit
Apple reports first quarter results
@chancehmiller Chance Miller on threads
Not a single analyst asked about the Masimo lawsuit/Apple Watch situation on Apple's earnings call
@lexnfx Alexei Oreskovic on x
Apple's wearables business declined 11% year-on-year in Q4. Big dropoff for the holiday quarter when lots of people buying airpods and apple watches. Tim Cook blaming product launch timings and 13-week quarter. no mention of the temporary pause in watch sales due to massimo...
@florian4gamers Florian Mueller on x
The no. 1 reason Apple is fighting hard against the EU's attempt to open up app distribution is that Apple's privacy & security set of pretexts would lose all credibility if alternative app stores by Microsoft, Epic etc. worked and users were still safe, as they really would be.
@neilcybart Neil Cybart on x
Tim Cook: Excluding FX, iPhone revenue in mainland China was down mid-single digits. Using Cook's words, the “good news” was we saw solid growth in iPhone upgrading in mainland China. We had four of the top 6 smartphone models in urban China. But we prefer not to contract.
@jimcramer Jim Cramer on x
I mean, China, Apple— enough, it's terrible there
@reuters @reuters on x
Apple China sales lag overshadows quarterly profit, revenue beats https://www.reuters.com/... [image]
@asymco@mastodon.social @asymco@mastodon.social on mastodon
EU market is about 7% of global services revenues.
@asymco@mastodon.social @asymco@mastodon.social on mastodon
Services gross margin was 72.8%. Second highest ever.
@asymco@mastodon.social @asymco@mastodon.social on mastodon
Luca Maestri has been sandbagging shamelessly lately. Expect that to continue.
@asymco@mastodon.social @asymco@mastodon.social on mastodon
Services grew at 11% (on a 13 week vs. 14 week basis). 14% probable real growth rate.
@neilcybart Neil Cybart on x
There are more than one billion paid subscriptions across the Apple platform.
@neilcybart Neil Cybart on x
Apple discloses new installed base (active devices) figure: 2.2 billion (reflects record highs for all product categories and geographic segments).
@deadline @deadline on x
Apple Services, Home Of Apple TV+, Has “Well Over” 1 Billion Paid Subscriptions; CEO Tim Cook Salutes Martin Scorsese https://deadline.com/...

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