Apple‘s Services segment provided a lift to the tech giant’s overall June 2024 quarterly earnings, amid a slight drop-off in iPhone sales.
The company’s Services division, which includes Apple TV+, Apple Music, the App Store and other services, posted a new quarterly revenue record of $24.21 billion, an increase of 14.1%. Apple counts more than 1 billion paid subscriptions worldwide (including those for third-party services).
Sales of the company’s iPhone smartphones came in at $39.3 billion, down about 1%. Meanwhile, iPad revenue jumped 24% to $7.16 billion thanks to next-generation models that shipped during the quarter (indicating the backlash over its iPad Pro “Crush!” ad did not significantly hamper sales).
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Overall, for the three months ended June 29, the company reported revenue of $85.8 billion, up 5% and a record for a June quarter. Apple’s earnings per diluted share of $1.40 were up 11% for the period, which is its fiscal Q3 of 2024. That was comfortably above Wall Street expectations, which had pegged sales of $84.53 billion and EPS of $1.35. For the September 2024 quarter, analysts are predicting a top-line take of $93.39 billion.
For the September quarter, total company revenue is expected to grow at a rate similar to the June quarter, and the Services segment is anticipated to continue growing at double-digit rates similar to r the last three quarters, CFO Luca Maestri told analysts on the earnings call.
Apple CEO Tim Cook, in his prepared remarks, called out the company’s news announcements at the 2024 Worldwide Developers Conference, including Apple Intelligence, which “puts powerful, private generative AI models at the core of iPhone, iPad and Mac,” as well as the enhancements in iOS 18 (due out in the fall).
On the earnings call, Cook touted new original content coming to Apple TV+, including new seasons of “The Morning Show” and “Severance.” He also boasted that Apple TV+ garnered 72 Emmys nominations this year — “our best-ever showing for the upcoming awards event,” Cook said. That includes 16 noms for “The Morning Show” Season 3, 11 for limited series “Palm Royale” and 10 for “Lessons in Chemistry.”
Apple’s sales for the June quarter were up in all geographical regions with the exception of Greater China, where revenue dropped 6.5% to $14.73 billion.
