Apple has once again surpassed expectations with its Q4 2024 earnings, reporting $94.93 billion in revenue, a 6% increase from the same period last year. This new record for the September quarter highlights the company’s sustained growth and successful launch of new products, including the iPhone 16 and Apple Watch Series 10. Despite facing a significant one-time tax expense, Apple’s results underscore its impressive financial health and strong product demand.
Key Financial Highlights
Apple’s fiscal Q4 2024 closed with $94.93 billion in revenue, a $5.43 billion increase from Q4 2023’s $89.5 billion. Here’s a breakdown of the primary revenue streams:
- iPhone: $46.22 billion, up 5.5% year-over-year
- Mac: $7.74 billion, an increase of 1.71%
- iPad: $6.95 billion, up by 7.87%
- Wearables, Home, and Accessories: $9.04 billion, down 3%
- Services: $24.97 billion, a 11.91% jump year-over-year
Earnings and Profitability
Apple’s profitability was impacted by a $10.2 billion one-time income tax charge linked to a €13 billion back-tax payment ordered by the Irish government. With this tax factored in, Apple’s net income for Q4 2024 stands at $14.74 billion, and earnings per share (EPS) are $0.97. However, without this charge, EPS would have reached $1.64.
Product Performance and Launches
Apple does not disclose specific unit sales for its products, but revenue by category reveals strong performance across the board. The iPhone, iPad, and Services categories showed significant growth, while Wearables and Accessories saw a slight decline. Apple also introduced major new products and features during Q4, which contributed to its overall success:
- iPhone 16: Released in September 2024, the latest iPhone has been well-received, with pre-orders starting on September 13. Early numbers show strong consumer interest in the new features and performance enhancements.
- Apple Watch Series 10: Featuring improved health monitoring, including sleep apnea detection, the Series 10 brings significant upgrades that appeal to health-conscious users.
- AirPods 4: With advanced audio features, AirPods 4 adds more value to Apple’s accessories lineup.
Expanding Apple Services and Innovations
Apple’s Services category, which includes subscriptions like Apple Music, Apple TV+, iCloud, and the App Store, reported $24.97 billion in revenue—a notable 11.91% increase year-over-year. CEO Tim Cook attributes part of this growth to the introduction of Apple Intelligence, a new suite of AI-driven features designed with privacy in mind. These tools set a new standard in AI privacy and are expected to enhance Apple’s device ecosystem heading into the holiday season.
CEO Tim Cook expressed pride in Apple’s accomplishments this quarter:
“Today, Apple is reporting a new September quarter revenue record of $94.9 billion, up 6 percent from a year ago. During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection. And this week, we released our first set of features for Apple Intelligence, which sets a new standard for privacy in AI and supercharges our lineup heading into the holiday season.”
CFO Luca Maestri added:
“Our record business performance during the September quarter drove nearly $27 billion in operating cash flow, allowing us to return over $29 billion to our shareholders. We are very pleased that our active installed base of devices reached a new all-time high across all products and all geographic segments, thanks to our high levels of customer satisfaction and loyalty.”
Apple’s Q4 2024 results underline the company’s resilience, growth, and dedication to innovation. By combining cutting-edge technology with user-friendly features and a strong commitment to privacy, Apple continues to lead in consumer electronics. With a robust product lineup heading into the holiday season, Apple seems well-positioned for continued success.
Stay tuned for more updates from Apple’s earnings call and analysis on Q4 performance from industry insiders.
