Apple reports Q2 2024 Results: services revenue up, overall revenue down slightly
Apple reported quarterly revenue of $90.8 billion, representing a 4% decrease compared to the same period in the previous year.
Apple today released its financial results for the second quarter of its fiscal year 2024, which ended March 30, 2024. Here's a breakdown of the key takeaways:
Overall Revenue: Apple reported quarterly revenue of $90.8 billion, representing a 4% decrease compared to the same period in the previous year.
Earnings Per Share (EPS): Despite the revenue decline, Apple's EPS reached a record high for the March quarter at $1.53 per diluted share.
Highlights
Services Revenue: Despite the overall revenue decline, Apple's Services segment, which includes subscriptions like Apple Music, iCloud storage, and App Store fees, achieved a new all-time high in revenue. This indicates continued growth in digital services adoption by Apple users.
Active Installed Base: According to Apple, the company's active installed base of devices across all product categories and geographic regions reached a record high. This suggests a strong customer base and continued brand loyalty.
Product Launches and Events: Tim Cook, Apple's CEO, hinted at an upcoming product announcement in the following week and an "incredible" Worldwide Developers Conference scheduled for the following month.
Financial Strategy
Share Repurchases: Demonstrating confidence in the company's future, Apple's board authorized an additional $110 billion for share repurchases, a program that involves buying back company stock.
Dividend Increase: Apple announced a 4% increase in its quarterly dividend payout to shareholders, marking the twelfth consecutive year of dividend growth for the company.
A slight decrease in overall revenue, despite record services revenue and EPS, suggests Apple might be experiencing a slowdown in product sales compared to the previous year. However, the company's strong installed base, continued services growth, and commitment to shareholder value through share repurchases and dividend increases paint a positive picture of Apple's overall financial health.