On Thursday, October 31, 2024, Apple presented its financial results for the fourth fiscal quarter, setting a new record for revenues of $94.93 billion, signifying a 6% increase year-on-year. The company surpassed analysts’ expectations, achieving an adjusted earnings per share of $1.64 USD (excluding a one-time EU tax charge), above the consensus of $1.60 USD. iPhone’s flagship segment showed particular strength with sales of $46.22 billion, exceeding analysts’ forecasts of $45.04 billion and showing a rise of 5.5% compared to the previous year.
iPhone Success and AI Integration
The latest iPhone 16 demonstrated robust sales dynamism, and Tim Cook confirmed a faster adoption rate compared to the iPhone 15 series. Particularly noteworthy is the positive consumer response to the Apple Intelligence features, as evidenced by the latest iOS version being downloaded at twice the pace of last year’s update. However, some challenges remain a problem for Apple, with sales in China amounting to $15.03 billion, falling short of the expected $15.78 billion.
Financial Condition
CFO Luca Maestri reported strong financial results, with operational cash flows amounting to nearly $27 billion. The company retained its commitment to shareholder returns, announcing a cash dividend of $0.25 USD per share. Importantly, Maestri underscored that Apple’s active device base has reached new records across all products and geographic segments, indicating a high level of loyalty and customer satisfaction.
Product and Service Portfolio Results
The company’s product segments showed diversified results in individual categories. Service revenues continued their strong trajectory, reaching $24.97 billion, although slightly below analysts’ expectations. This segment maintains a high margin, accounting for over 26% of total revenues. Revenue from Mac computer sales met expectations at $7.74 billion, while iPad sales revenues amounted to $6.95 billion. The Wearables, Home, and Accessories department generated revenues of $9.04 billion. Total product revenues reached an impressive level of $69.96 billion, exceeding expectations of $69.15 billion, mainly due to strong iPhone results.
Future Development Prospects
Apple is increasing its investment outlays, which rose by $2.91 billion to $9.45 billion quarter-on-quarter. The strategy for further development focuses on three key areas: expanding AI capabilities through Apple Intelligence, maintaining the momentum of iPhone sales despite weaknesses in China, and developing a high-margin services business. The company’s ability to achieve these goals is key to sustaining further growth. Investors will be closely watching the broader implementation of AI features and their impact on the frequency of iPhone exchanges, as well as the development of new product categories such as Vision Pro.
Author: Maksymilian Kuch, XTB analyst
Source: https://managerplus.pl/apple-z-nowym-rekordem-przychodow-czy-ai-bedzie-zyskiwal-na-znaczeniu-72558
