Gross margin improved to 46.3%, up from 44.5% in the year-ago quarter. This reflects their ability to manage costs effectively while boosting its profitability. The company also declared a quarterly dividend of $0.25 per share, payable on August 15 to shareholders of record as of August 12.
Segment Performance
iPhone revenue was slightly down by 1% year-over-year, reaching $39.3 billion. Despite this, they saw growth in constant currency terms and set June quarter records in several markets, including the UK, Spain, Mexico, and China.
Mac revenue increased by 2.5% year-over-year to $7 billion, driven by strong demand for the M3-powered MacBook Air, particularly among students. iPad revenue surged by 23.7%, totaling $7.2 billion, thanks to the new iPad Pro and iPad Air models, which are powered by the M-series chips.
This category saw a slight decline of 2% year-over-year, generating $8.1 billion. Despite the dip, products like the Apple Watch and AirPods continue to be popular among consumers.
Services segment achieved a new all-time revenue record of $24.2 billion, marking a 14.1% increase year-over-year. This growth was driven by high demand for advertising, cloud services, and payment services. The number of paid subscriptions rose to over 1 billion, more than doubling over the past four years.
CEO Insights
CEO Tim Cook highlighted the company’s achievements during the quarter, including the successful updates announced at the Worldwide Developers Conference (WWDC). These updates introduced Apple Intelligence, a breakthrough in personal intelligence systems that integrates private AI models into the iPhone, iPad, and Mac. Cook emphasized the importance of these innovations in enhancing user experience and driving future growth.
Cook also discussed the potential of Apple Intelligence and its ability to enrich customers’ lives through advanced AI technology. He expressed optimism about the impact of AI on the product ecosystem, signaling a continued focus on technological advancements.
Financial Strategies
They generated nearly $29 billion in operating cash flow and returned over $32 billion to shareholders through dividends and share repurchases. The company’s installed base of active devices reached all-time highs in all geographic segments, reflecting strong customer loyalty and product adoption.
They ended the quarter with $153 billion in cash and marketable securities. After repaying $4.3 billion in maturing debt and increasing commercial paper by $1 billion, the net cash position was $52 billion. The company continues to prioritize shareholder returns and strategic investments to drive long-term growth.
Continued Growth & Innovation
The company did not issue specific guidance for the upcoming quarter but expects continued growth in revenue and services. The integration of Apple Intelligence and other technological advancements are anticipated to drive demand and enhance the user experience across Apple’s product lineup.
Apple set quarterly revenue records in over two dozen countries, indicating strong international growth. The company’s focus on expanding its services and product offerings in emerging markets is likely to contribute to sustained revenue growth.
Apple’s 3Q 2024 earnings report underscores the company’s robust financial performance and strategic focus on innovation and customer satisfaction.