Apple exceeded stock market analysts’ expectations in the second quarter of 2024 (as of June 29) and set a new sales record: $85.8 billion, up 4.9 percent year-on-year. The biggest growth driver was services, and the iPad also provided momentum again after a long time. Operating profit rose 10.2 percent to $25.4 billion and operating cash flow rose 9.4 percent to $28.9 billion.
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Apple spent a large portion of it buying back its own shares, $26.5 billion. The company’s cash reserves fell by $7.3 billion to $26.6 billion. Apple reported a pre-tax profit of $25.5 billion (+12.1%). Because a substantial tax payment is due, net profit rose “only” 7.9 percent to $21.4 billion. This comes from Apple published quarterly figures on Thursday evening Outside.
iPhone is weak, iPad shines
Revenue from sales of iPhones fell less than one percent year-over-year to $39.3 billion, which is particularly due to Apple’s difficult China business. Analysts on average had expected iPhone sales of $39 billion. Services, on the other hand, are growing significantly: Apple was able to post sales of $24.2 billion, an increase of 14.1 percent. In other words: three billion of the nearly four billion dollars in sales growth in the second quarter came from services alone.
iPads, which have regularly suffered setbacks in recent quarters because Apple did not introduce a single new model in 2023, offer a particular surprise: this time they brought in $7.2 billion in sales, an increase of 23.7 percent. The iPad Pro M4 and iPad Air M2, which were introduced in May, are apparently well received by customers. iPad sales are half a billion dollars higher than analysts had predicted. Mac computers brought in 2.5 percent more sales (now seven billion dollars). The wearables, home and accessories division, however, only achieved sales of $8.1 billion (-2.3%).
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Apple boss Tim Cook on Thursday evening gushed over the “incredible updates” announced for Apple’s software platforms. By this he specifically means Apple Intelligence, the system for generative AI. These “powerful and personal” models will gradually become available on iPhone, iPad and Mac soon. US English will start in the fall, and new functions, languages ​​and regions will come gradually over the next year. “We are excited to share this with our users.” Apple is making “significant” investments in these innovations, which will “enrich the lives of our customers.”
Apple announces the dispute with the EU Commission on the Digital Markets Act (DMA) in the usual way Conference call with financial analysts “Continuing discussions with the Commission about how we ensure full compliance with the DMA”. The company apparently generates about seven percent of sales in the services business through the App Store in the EU. Also of concern is China. Group-wide sales there fell six percent to $14.7 billion.
Management is proud that the installed device base has reached a new all-time high “across all geographies.” A dividend of 25 US cents per share is expected to be paid in mid-August. The stock price rose several times per thousand in after-hours trading on Thursday evening.
(B.Sc.)
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