Apple reports Q2 2024 Results: services revenue up, overall revenue down slightly

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.