We went by Apple CEO Tim Cook dinner’s earnings name with buyers on Thursday, and located some real surprises in the course of the dialogue of the monetary outcomes of the vacation 2024 quarter. We additionally turned up spectacular figures exhibiting simply how properly the corporate is doing.
Monetary particulars don’t need to be boring. Listed below are the excessive factors from the decision as shortly and as fascinating as we will make them.
Highlights of Apple’s hour-long earnings name in simply 9 paragraphs
Apple surpasses 2.35 billion lively units: The uncooked variety of Apple units at present in use boggles the thoughts. “Because of our unbelievable buyer satisfaction and robust loyalty, our put in base of lively units reached an all-time excessive throughout all merchandise and geographic segments, and is now over 2.35 billion lively units,” mentioned Apple’s new CFO Kevan Parekh. That’s roughly one Apple gadget for each 3.4 individuals on the planet. — Lewis Wallace
Apple Intelligence is just not a bust: Apple Intelligence has usually been judged an enormous dud, however Apple mentioned it’s really been driving gross sales of iPhone in areas the place it’s accessible. “Within the markets the place we had launched Apple intelligence, they outperformed the markets that we didn’t,” Tim Cook dinner mentioned on the decision. — Leander Kahney
Apple’s revenue engine is loopy: Apple’s skill to generate profits is beautiful. Apple’s gross margins had been 46% for the quarter. As a normal rule, companies purpose for 10% to fifteen% gross margins, however some companies, like eating places, battle to make 5%. Any type of {hardware} is especially tough to make good margins from — and Apple’s skill to make bushels of it’s fairly jaw-dropping. It’s helped massively by Apple’s Companies division, which reported $26 billion in revenues and 75% gross margins — 75%!!!!! — Leander Kahney
iPhone gross sales fell to “solely” $69.1 billion: Lengthy considered by Wall Avenue as the important thing indicator of Apple’s success, iPhone revenues really fell final quarter … to a measly $69.1 billion. Parekh dismissed the 0.8% drop, calling iPhone gross sales “roughly flat.” Nonetheless, Apple set an all-time document for iPhone upgraders and the lively iPhone set up base. And Cook dinner mentioned there’s “quite a lot of innovation left on the smartphone.” — Lewis Wallace
Mac income grew by leaps and bounds: With the assistance of the first MacBook Professional mannequin with Apple’s M4 processor, income from Mac gross sales jumped a powerful 16% versus the identical quarter of the earlier 12 months to simply underneath $9 billion. Is the expansion from upgraders or switchers? Each. “The M4 primarily based merchandise are so compelling that it’s driving each upgrades on the double digit stage, and it’s driving switchers at a double digit stage,” mentioned Apple’s CEO. — Ed Hardy
iPad gross sales are up, up, up: Apple is raking in cash from pill gross sales — $8.1 billion final quarter alone — however don’t give the slim new M4 iPad Professional with an OLED display the credit score. As Cook dinner mentioned in the course of the name, “iPad total grew 15% for the quarter, and it was extra pushed by iPad Air and the entry-level iPad than it was the highest stage iPad.” — Ed Hardy
iPad and Apple Watch are attracting tons of recent Apple customers: Gross sales of each iPad and Apple Watch had been significantly robust in the course of the quarter, and each merchandise attracted numerous clients who’re new to Apple. Cook dinner and co. mentioned greater than 50% of gross sales of each Apple Watch and iPad had been to new clients, not upgraders. It quantities to quite a lot of new Apple customers. — Leander Kahney
Companies rake in additional income than ever: Income from companies like Apple Pay and Apple TV+ grew 14% 12 months over 12 months to set a brand new document excessive. “In companies, we achieved an all-time income document,” Cook dinner mentioned. “And prior to now 12 months, we’ve seen practically $100 billion in income from our companies enterprise.” With “properly over a billion paid subscriptions,” companies gross margin hit an astonishing 75%, mentioned Parekh. — Lewis Wallace
India is Apple’s subsequent gigantic progress market: A whole lot of Apple’s big progress during the last 10 years or so got here from China, which has ballooned into considered one of Apple’s largest geographical markets after the U.S. and Europe. The subsequent 10 years of progress will probably come from India. “I’m significantly eager on India,” Cook dinner mentioned in the course of the name. “The iPhone was the top-selling mannequin in India for the quarter and it’s the second-largest smartphone market on the planet and third-largest for PCs and tablets. It’s an enormous market and we’ve got very modest share in these markets and I believe there’s numerous upside there.” — Leander Kahney
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