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Apple reports Q3 revenue up 5% YoY to $85.8B, net income up 8% to $21.4B, Americas net sales up 6% to $37.7B, and Europe net sales up 8% to $21.9B

June quarter records for Revenue and EPS Services revenue reaches new all-time high  —  Apple® today announced financial results …

Apple Inc.

Context & Ripple Effects

Apple’s June-quarter performance extends a recent return to growth after the prior quarter’s revenue decline, while its earlier fiscal Q1 results had already shown rising profit despite more modest top-line expansion. Growth in both the Americas and Europe broadens the reported improvement beyond a single region.

The new Services record continues a pattern visible in Apple’s earlier record Services quarter, making recurring revenue an increasingly important part of the company’s earnings mix alongside hardware sales.

First-order effects

  • Apple enters the next quarter with higher revenue and faster net-income growth, while its Americas and Europe businesses both contributed to the increase.
  • A new Services revenue record gives Apple a larger recurring-revenue contribution within the quarter’s overall sales and profit performance.

Second-order effects

  • Apple’s hardware and digital-services rivals face a stronger benchmark in two of its largest reported regions, particularly where device ecosystems and paid services compete for the same customers.
  • The result reinforces the commercial value of expanding monetization after device sales: growth in Services can support earnings even when product-category detail is not disclosed.

Third-order effects

  • If this mix persists, large device makers may become less dependent on unit growth and more focused on revenue per installed device through subscriptions, content, payments, and other services.
  • The durable competitive divide may increasingly be between companies that can convert a large device base into recurring revenue and those whose economics remain primarily transactional.

The trend: Apple’s results are one data point in the broader shift from hardware-led growth toward ecosystem monetization and higher revenue per active device.

Discussion

  • @stroughtonsmith … Steve Troughton-Smith on mastodon
    This is the launch year of Apple's Vision Pro, but from their first six months of financial statements you wouldn't know it.  Much like their first-party software support, it's just crickets and tumbleweed
  • @markgurman Mark Gurman on x
    Apple reports better than expected results across every product category, with the new iPads giving the category a 24% sales boost. iPhone sales are down 1% year-over-year and China is down about 6%. https://www.bloomberg.com/...
  • @benbajarin Ben Bajarin on x
    A new June Q record for Apple. Set's them up well for what many beleive is a strong a run with some AI lift coming in the next year. [image]
  • @neilcybart Neil Cybart on x
    Apple's 3Q24: - iPhone: $39.3B (vs my $38.7B) - Services: $24.2B (vs my $24.1B) - Wearables / Home etc. $8.1B (vs my $7.9B) - iPad: $7.2B (vs $6.9B) - Mac: $7.0B (vs $6.9B) I'm pleased with how my estimates held up.
  • @pkafka Peter Kafka on x
    You know how we always say that Apple's iPhone sales are slowing so it's increasingly reliant on service revenue* for growth? Last quarter product sales** grew by $1 billion. Services were up $3 billion. [image]
  • @thetranscript_ @thetranscript_ on x
    $AAPL CEO @tim_cook: “[In Q3 FY 24], iPhone revenue was $39.9B down 1% YoY. On a constant currency basis, we grew compared to last year. Customers continue to praise the iPhone 15 lineup for its incredible battery life, exceptional cameras & unmatched power & performance” [image]
  • @munster_gene Gene Munster on x
    $AAPL's China segment was down 6.5%, the Street was expecting it to be down 0.7%. That means Apple's non-China business was up 7% YoY, compared to the 5% growth in global revenue.
  • @emilychangtv Emily Chang on x
    Just off the phone w/ Apple CFO Luca Maestri: He wouldn't comment on a potential AI “supercycle” but said he thinks new AI features will be very “personal, relevant...and yet another reason to upgrade.”  Re: decline in China, he pointed to currency issues and said the underlying …
  • @dcurtis Dustin Curtis on threads
    Apple's numbers are so huge it's hard to understand them at human scale.  During the last three months, they made $953.1 million in revenue and $238.2 million in net profit every single day.  That's ~$1 billion in profit every four days.  Just insane.
  • @moonandmidnightthe_cats @moonandmidnightthe_cats on threads
    I was at Apple when the company squeaked out a $25 Million dollar profit in 1997 - after a string of losses.  $25 million.  Now look at today's earnings.
  • @reuters @reuters on x
    Apple sees continued revenue growth as iPhone demand picks up https://www.reuters.com/... [image]
  • @greengart Avi Greengart on x
    .@Apple's quarter looks pretty good. Hardware revenues stable despite stronger smartphone competition in China, services revenues way up, and enormously popular products that should benefit from AI over time.
  • @benbajarin Ben Bajarin on x
    I don't think this is right from the perspective of systems integration of on device AI and the relevant features at a systems level. I use every AI service/feature there is and from my time with Apple Intelligence it is not far behind.
  • @sarthakgh Sar Haribhakti on x
    “Cook said that about half of iPad buyers are first-time buyers, suggesting the tablet market is not yet saturated.” “A whopping two-thirds of the Apple Watch buyers were new to the product. So, we're still growing that base significantly,” Cook said. Bonkers [image]
  • @pkedrosky Paul Kedrosky on x
    This feels like the triumph of hope over experience, as Oscar Wilde once said about a man's second marriage: WSJ: Apple's iPhone Sales Slide, but Investors Still Expect AI Rally
  • @munster_gene Gene Munster on x
    My read on $AAPL's AI Capex approach; let OpenAI, and eventually Google pick up the bill.  Managment essentially did not give any details about how Capex is shared with OpenAI.  Overall I expect Apple is going to continue to spend about $10B +/- a year on Capex vs the rest of big…
  • @benbajarin Ben Bajarin on x
    I don't believe in any AI supercycle but I do belive AI will drive a stronger than normal cycle. China is already using a lot more AI on devices than the US, so Apple bringing Apple Intelligence to China sooner than later will no doubt lift their sales there as well.
  • @munster_gene Gene Munster on x
    Apple's guide was solid.  One dynamic to keep in mind, is that guidance factors in the Osborne Effect starting to kick in (deferring orders for the current, soon-to-be-obsolete product).  Despite the fact that this year, more than a typical year, anyone who's thinking about buyin…
  • @neilcybart Neil Cybart on x
    Some of these financial analysts wanting Apple to do their jobs for them.
  • @9to5mac @9to5mac on x
    Apple working with regulators to enable Apple Intelligence in China and the EU https://9to5mac.com/... by @filipeesposito
  • @cnbc @cnbc on x
    Apple is spending more on AI, but remains far behind its Silicon Valley peers https://www.cnbc.com/...
  • r/apple r on reddit
    Apple reports third quarter results
  • @neilcybart Neil Cybart on x
    Apple's revenue in Greater China was down 6.5% in 3Q24. That's an improvement from revenue being down 8.1% yoy in 2Q24. Revenue was down 12.9% yoy in 1Q24.
  • @asymco@mastodon.social @asymco@mastodon.social on mastodon
    Apple Services is bigger than Mac, iPad, Wearables, Home and Accessories, combined.
  • @coneee Conrad Quilty-Harper on x
    I want to know how many billions of this comes from “your iCloud is out of space”
  • @rjonesy Ryan Jones on x
    I just want to see Apple Services revenue broken out! - Google search deal - App Store games commision - App Store apps commision - AppleCare - Apple Music - iCloud - Else The growth must be games, Music, and iCloud? cc @jsnell @benthompson @gruber [image]
  • @waltlightshed Walter Piecyk on x
    $AAPL says it can sustain this growth rate in Services despite the difficult comp. That should contribute 350 basis points to the 5% total revenue growth guidance.