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Apple Inc. is a leading technology company that designs, manufactures, and markets a wide range of consumer electronics, including smartphones, personal computers, tablets, wearables, and accessories, along with offering various related services . The company's product lines include the iPhone, Mac, iPad, and Wearables, Home, and Accessories, which are significant contributors to its revenue . In addition to hardware, Apple provides services such as advertising, AppleCare, cloud services, digital content, and payment services, which have become an increasingly important part of its business .
- iPhone - Develops and markets smartphones that are a major contributor to the company's revenue.
- Services - Offers a range of services including advertising, AppleCare, cloud services, digital content, and payment services, which have reached a new all-time high in revenue.
- Wearables, Home, and Accessories - Produces and sells wearables and home accessories, contributing significantly to the company's sales.
- Mac - Designs and sells personal computers that are a substantial part of the company's product offerings.
- iPad - Manufactures and markets tablets that are an important segment of the company's product line.
- With Services revenue reaching a $100 billion run rate, can you elaborate on the sustainability and growth prospects of the recurring versus transactional components, and how competitive pressures might affect these segments?
- Given that peers are significantly increasing their R&D investments in AI, do you believe reallocating existing resources is adequate, or should Apple increase its R&D spending beyond the current 7% to 8% of sales to fully capitalize on AI opportunities?
- Despite your large installed base, services like Apple Music, News, Arcade, and Fitness are not leading in their markets; what strategies do you have to enhance their competitiveness, and is the decision to keep them non-cross-platform limiting their growth potential?
- You've maintained around $50 billion in net cash despite pledges to achieve a net neutral cash position; how do you plan to utilize this cash effectively, and are there more aggressive investment opportunities you're considering instead of increasing shareholder returns?
- Considering economic uncertainties and geopolitical tensions in China, how do you plan to mitigate potential risks in this crucial market, and what impact might these factors have on your future growth strategies there?
Recent developments and announcements about AAPL.
Financial Reporting
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Revenue Highlights:
- Total revenue for the quarter was $124.3 billion, a 4% increase year-over-year.
- Services revenue reached an all-time high of $26.34 billion, reflecting strong growth in this segment ,.
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Profitability:
- Net income for the quarter was $36.33 billion, up from $33.92 billion in the same quarter last year.
- Diluted earnings per share (EPS) hit a record $2.40, a 10% increase year-over-year.
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Geographic and Product Performance:
- Revenue growth was driven by strong performance in the Americas ($52.65 billion, up from $50.43 billion) and Europe ($33.86 billion, up from $30.40 billion).
- Product-wise, Mac and iPad saw significant growth, with revenues of $8.99 billion (up from $7.78 billion) and $8.09 billion (up from $7.02 billion), respectively.
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Operational Efficiency:
- Gross margin improved to $58.28 billion, up from $54.86 billion in the prior year.
- Operating income rose to $42.83 billion, reflecting strong cost management and operational efficiency.
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Shareholder Returns:
- Apple returned over $30 billion to shareholders through share repurchases and dividends during the quarter.
- A cash dividend of $0.25 per share has been declared, payable on February 13, 2025.
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CEO Commentary:
- Tim Cook highlighted the success of Apple’s product lineup during the holiday season and the growing adoption of Apple Intelligence, which will expand to more languages in April 2025.
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Upcoming Events:
- A live webcast of Apple’s Q1 2025 financial results conference call will be available on January 30, 2025, at 2:00 p.m. PT.
Earnings Report
Apple Inc. has released its Q1 2025 earnings results, reporting record-breaking performance.
This quarter underscores Apple’s ability to deliver consistent growth and innovation across its product and service lines, even in a competitive market environment.
Corporate Leadership
Leadership Change
Who is leaving? Luca Maestri, Apple’s Chief Financial Officer, has stepped down as part of a planned transition.
Why? This is part of Apple’s previously announced CFO transition plan.
Who is stepping up? Kevan Parekh has been appointed as the new Senior Vice President and Chief Financial Officer, effective January 1, 2025. He has been with Apple since 2013 and previously held roles such as Vice President of Financial Planning and Analysis and Vice President of Finance for Sales, Marketing, and Retail.
Leadership Change
Who is leaving: Chief Financial Officer Luca Maestri.
Why: Transitioning from his role on January 1, 2025, but will continue to lead Corporate Services teams.
Who is stepping up: Kevan Parekh, Apple’s Vice President of Financial Planning and Analysis, will become Chief Financial Officer and join the executive team .
CFO Change
Apple Inc. announced that Chief Financial Officer Luca Maestri will transition from his role on January 1, 2025. He will continue to lead Corporate Services teams and report to CEO Tim Cook. Kevan Parekh, currently Vice President of Financial Planning and Analysis, will succeed him as CFO .
Board Change
Monica Lozano has been appointed to the Apple Inc. Board of Directors, effective January 4, 2021. She will serve on the Audit and Finance Committee and will receive a $100,000 annual retainer as a non-employee director .
Board Change
Monica Lozano has been appointed to the Apple Inc. Board of Directors, effective January 4, 2021. She will serve on the Audit and Finance Committee and will receive a $100,000 annual retainer as a non-employee director .
Leadership Change
Bruce Sewell is leaving his position as Apple's Senior Vice President, General Counsel, and Secretary. He is retiring at the end of the year. Katherine Adams will step up to succeed him as General Counsel and Senior Vice President, effective November 13, 2017 .
Financial Actions
- Revenue: Apple reported a quarterly revenue of $94.9 billion, marking a 6% increase compared to the same quarter last year .
- Earnings Per Share (EPS): The diluted earnings per share were $0.97. However, when excluding a one-time charge related to the reversal of the European General Court’s State Aid decision, the EPS was $1.64, reflecting a 12% year-over-year increase .
- Product Launches: During the quarter, Apple launched new products, including the iPhone 16 lineup, Apple Watch Series 10, and AirPods 4, along with new features for hearing health and sleep apnea detection .
- Cash Flow and Shareholder Returns: The company generated nearly $27 billion in operating cash flow and returned over $29 billion to shareholders .
- Dividend: Apple declared a cash dividend of $0.25 per share, payable on November 14, 2024, to shareholders of record as of November 11, 2024 .
- Services Revenue: The services segment reached a new all-time high, contributing significantly to the overall revenue .
- Apple's active installed base of devices reached a new all-time high across all products and geographic segments, driven by high customer satisfaction and loyalty .
- The company continues to focus on privacy in AI with the release of Apple Intelligence features, setting a new standard in the industry .
- For press inquiries, contact Josh Rosenstock at jrosenstock@apple.com.
- For investor relations, contact Suhasini Chandramouli at suhasini@apple.com .
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Revenue: Apple reported a quarterly revenue of $85.8 billion, marking a 5% increase year-over-year. This sets a new record for June quarter revenue .
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Earnings Per Share (EPS): The company achieved a quarterly earnings per diluted share of $1.40, which is an 11% increase compared to the same period last year .
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Services Revenue: The services segment reached a new all-time high, contributing significantly to the overall revenue growth .
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Operating Cash Flow: Apple generated nearly $29 billion in operating cash flow during the quarter, which facilitated the return of over $32 billion to shareholders .
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Dividend: Apple's board of directors declared a cash dividend of $0.25 per share, payable on August 15, 2024, to shareholders of record as of August 12, 2024 .
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Geographic Performance: The installed base of active devices reached a new all-time high across all geographic segments, driven by high levels of customer satisfaction and loyalty .
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Product and Segment Sales: The net sales for products were $61.564 billion, while services brought in $24.213 billion. The Americas region led with $37.678 billion in sales, followed by Europe with $21.884 billion .
- Revenue: Apple reported a quarterly revenue of $90.8 billion, which is a 4% decrease compared to the same quarter last year .
- Earnings Per Share (EPS): The company achieved a record EPS for the March quarter at $1.53 per diluted share .
- Services Revenue: Apple set an all-time revenue record in its Services segment, contributing significantly to its overall financial performance .
- Share Repurchase and Dividend: The Board has authorized an additional $110 billion for share repurchases and increased the quarterly dividend by 4% to $0.25 per share, marking the twelfth consecutive year of dividend increases .
- Product Launches and Future Plans: During the quarter, Apple launched the Apple Vision Pro and is planning an exciting product announcement next week, along with the Worldwide Developers Conference next month .
- Installed Base Growth: Apple's active installed base of devices reached a new all-time high across all products and geographic segments, driven by high customer satisfaction and loyalty .
- Geographic Sales: The Americas remained the largest market with $37.3 billion in sales, followed by Europe and Greater China .
- Product Category Performance: iPhone sales were $45.96 billion, while Services revenue was $23.87 billion, highlighting the growing importance of Apple's services ecosystem .
Dividend Policy
Apple's Q4 2024 Earnings Results
Apple has announced its financial results for the fourth quarter of fiscal 2024, which ended on September 28, 2024. Here are the key highlights:
Significant Trends:
For more detailed financial information, Apple will provide a live stream of its Q4 2024 financial results conference call on October 31, 2024, at 2:00 p.m. PT .
Contact Information:
Dividend Policy
Apple's Q3 2024 Earnings Results
Apple has announced its financial results for the fiscal third quarter of 2024, which ended on June 29, 2024. Here are the key highlights:
These results reflect Apple's strong performance and strategic focus on expanding its services and maintaining high customer satisfaction across its product lines.
Dividend Policy
Apple's Earnings Results for Q2 2024
Apple has released its financial results for the second fiscal quarter of 2024, which ended on March 30, 2024. Here are the key highlights:
Significant Trends:
Apple will host a live streaming of its Q2 2024 financial results conference call on May 2, 2024, at 2:00 p.m. PT, which will be available for replay for approximately two weeks .
For more detailed financial data, you can visit Apple's investor relations website .