Apple Q3 revenue: iPhone down 1% YoY to $39.30B, Mac up 2% YoY to $7.01B, iPad up 24% YoY to $7.16B, and Wearables, Home, and Accessories down 2% YoY to $8.10B
but that was off a base of nearly $80 billion. … Emil Protalinski : Apple's Q3 2024 earnings are out: — Revenue up 5% to $85.8 billion — Net income up 8% to $21.4 billion — iPhone revenue down 1% … Forums: r/apple : Apple reports third quarter results MacRumors Forums : Apple Reports 3Q 2024 Results: $21.4B Profit on $85.8B Revenue
CNBCKif Leswing
Context & Ripple Effects
Apple's prior Q3 showed declines across iPhone, Mac, and iPad; this quarter reverses the latter two categories while handset revenue remains soft, extending an uneven hardware recovery from the prior Q3's broad category declines.
The iPad increase is especially notable against earlier iPad and Mac contractions, while total revenue and net income still rose despite lower iPhone and wearables sales. The result matters because it shows how category mix can support overall growth when the largest hardware line is flat to down.
First-order effects
Apple's immediate hardware mix shifts toward iPad and modest Mac growth: iPad revenue rose 24% to $7.16 billion and Mac rose 2% to $7.01 billion, offsetting declines in iPhone and Wearables, Home, and Accessories.
iPhone remains the largest reported product category at $39.30 billion, but its 1% decline limits the contribution from the business that still accounts for the largest share of reported hardware revenue.
Second-order effects
The quarter makes Apple more dependent on strength in its smaller device categories to sustain hardware growth when iPhone demand is not expanding; iPad's rebound carries more weight in that mix than it did during its earlier year-over-year decline.
The contrasting category results give Apple a clearer incentive to preserve momentum in iPad and Mac while addressing the weaker iPhone and wearables lines, rather than relying on a uniform hardware-cycle recovery.
Third-order effects
If mixed category performance persists, Apple's quarterly results will increasingly be judged on its ability to grow revenue across a broader installed-device base, not solely on iPhone growth.
The pattern points to a more diversified hardware revenue mix, though the iPhone's scale means renewed handset growth would still have the greatest effect on overall results.
The trend: Apple is navigating a shift from synchronized hardware cycles toward more uneven, category-by-category growth across its device portfolio.
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.
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.
.@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.
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.
“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]
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
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…
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.
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…