Apple reports first quarter results
- None.
- None.
Insights
Apple's recent financial results for Q1 2024, with a revenue increase of 2% year over year and a significant 16% increase in earnings per share (EPS), indicate a stable growth trajectory for the company. The EPS growth outpacing revenue growth suggests improved profitability, which could be attributed to higher-margin products or services, cost reductions, or a combination of both. The increase in the installed base of active devices to over 2.2 billion signifies a broadening market presence and hints at a robust ecosystem that can generate recurring revenue streams, particularly from the Services sector.
With nearly $40 billion in operating cash flow and a substantial return of almost $27 billion to shareholders, Apple demonstrates strong financial health and a commitment to shareholder returns. The cash dividend declaration further reinforces this commitment. However, investors should consider the context of the fiscal calendar changes, with the reported quarter having one fewer week than the previous year, which might have impacted the year-over-year comparisons.
The all-time high in Services revenue is a critical aspect of Apple's financial results. This diversification away from hardware dependency towards services such as Apple Music, iCloud and the App Store is a strategic move that addresses the maturing smartphone market. The Services sector typically offers higher profit margins and more stable revenue compared to the cyclical nature of product sales. The anticipation around the new Apple Vision Pro product could further catalyze interest and sales, potentially leading to an uptick in associated service subscriptions.
Geographic expansion and product penetration are also noteworthy, as indicated by the all-time high across all products and segments. This suggests that Apple is effectively leveraging its brand and innovation in various markets, which is essential for maintaining growth momentum in a highly competitive tech landscape.
From an economic perspective, Apple's performance is a bellwether for the consumer electronics industry and broader economic health. The reported revenue growth, despite global economic uncertainties and supply chain challenges, reflects resilient consumer demand for Apple products. The company's ability to maintain growth and profitability in such an environment may provide positive signals for the sector and could influence investor sentiment across the tech industry.
The declared dividend and the share buyback program are indicative of Apple's capital allocation strategy, which supports stock prices through direct returns to shareholders. Additionally, the significant investments across the business for long-term growth plans could have multiplier effects on the economy, driving innovation, job creation and potentially leading to more consumer spending.
Services revenue reaches new all-time record
EPS up 16 percent to new all-time high
“Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “We are pleased to announce that our installed base of active devices has now surpassed 2.2 billion, reaching an all-time high across all products and geographic segments. And as customers begin to experience the incredible Apple Vision Pro tomorrow, we are committed as ever to the pursuit of groundbreaking innovation — in line with our values and on behalf of our customers.”
“Our December quarter top-line performance combined with margin expansion drove an all-time record EPS of
Apple’s board of directors has declared a cash dividend of
Based on the Company’s fiscal calendar, the Company’s fiscal 2024 first quarter had 13 weeks, while the Company’s fiscal 2023 first quarter had 14 weeks.
Apple will provide live streaming of its Q1 2024 financial results conference call beginning at 2:00 p.m. PT on February 1, 2024 at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks thereafter.
Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about payment of the Company’s quarterly dividend. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, war, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.
© 2024 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts) |
|||||||
|
Three Months Ended |
||||||
|
December 30,
|
|
December 31,
|
||||
Net sales: |
|
|
|
||||
Products |
$ |
96,458 |
|
|
$ |
96,388 |
|
Services |
|
23,117 |
|
|
|
20,766 |
|
Total net sales (1) |
|
119,575 |
|
|
|
117,154 |
|
Cost of sales: |
|
|
|
||||
Products |
|
58,440 |
|
|
|
60,765 |
|
Services |
|
6,280 |
|
|
|
6,057 |
|
Total cost of sales |
|
64,720 |
|
|
|
66,822 |
|
Gross margin |
|
54,855 |
|
|
|
50,332 |
|
|
|
|
|
||||
Operating expenses: |
|
|
|
||||
Research and development |
|
7,696 |
|
|
|
7,709 |
|
Selling, general and administrative |
|
6,786 |
|
|
|
6,607 |
|
Total operating expenses |
|
14,482 |
|
|
|
14,316 |
|
|
|
|
|
||||
Operating income |
|
40,373 |
|
|
|
36,016 |
|
Other income/(expense), net |
|
(50 |
) |
|
|
(393 |
) |
Income before provision for income taxes |
|
40,323 |
|
|
|
35,623 |
|
Provision for income taxes |
|
6,407 |
|
|
|
5,625 |
|
Net income |
$ |
33,916 |
|
|
$ |
29,998 |
|
|
|
|
|
||||
Earnings per share: |
|
|
|
||||
Basic |
$ |
2.19 |
|
|
$ |
1.89 |
|
Diluted |
$ |
2.18 |
|
|
$ |
1.88 |
|
Shares used in computing earnings per share: |
|
|
|
||||
Basic |
|
15,509,763 |
|
|
|
15,892,723 |
|
Diluted |
|
15,576,641 |
|
|
|
15,955,718 |
|
|
|
|
|
||||
(1) Net sales by reportable segment: |
|
|
|
||||
|
$ |
50,430 |
|
|
$ |
49,278 |
|
|
|
30,397 |
|
|
|
27,681 |
|
|
|
20,819 |
|
|
|
23,905 |
|
|
|
7,767 |
|
|
|
6,755 |
|
Rest of |
|
10,162 |
|
|
|
9,535 |
|
Total net sales |
$ |
119,575 |
|
|
$ |
117,154 |
|
|
|
|
|
||||
(1) Net sales by category: |
|
|
|
||||
iPhone |
$ |
69,702 |
|
|
$ |
65,775 |
|
Mac |
|
7,780 |
|
|
|
7,735 |
|
iPad |
|
7,023 |
|
|
|
9,396 |
|
Wearables, Home and Accessories |
|
11,953 |
|
|
|
13,482 |
|
Services |
|
23,117 |
|
|
|
20,766 |
|
Total net sales |
$ |
119,575 |
|
|
$ |
117,154 |
|
Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value) |
|||||||
|
December 30,
|
|
September 30,
|
||||
ASSETS: |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
40,760 |
|
|
$ |
29,965 |
|
Marketable securities |
|
32,340 |
|
|
|
31,590 |
|
Accounts receivable, net |
|
23,194 |
|
|
|
29,508 |
|
Vendor non-trade receivables |
|
26,908 |
|
|
|
31,477 |
|
Inventories |
|
6,511 |
|
|
|
6,331 |
|
Other current assets |
|
13,979 |
|
|
|
14,695 |
|
Total current assets |
|
143,692 |
|
|
|
143,566 |
|
|
|
|
|
||||
Non-current assets: |
|
|
|
||||
Marketable securities |
|
99,475 |
|
|
|
100,544 |
|
Property, plant and equipment, net |
|
43,666 |
|
|
|
43,715 |
|
Other non-current assets |
|
66,681 |
|
|
|
64,758 |
|
Total non-current assets |
|
209,822 |
|
|
|
209,017 |
|
Total assets |
$ |
353,514 |
|
|
$ |
352,583 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
58,146 |
|
|
$ |
62,611 |
|
Other current liabilities |
|
54,611 |
|
|
|
58,829 |
|
Deferred revenue |
|
8,264 |
|
|
|
8,061 |
|
Commercial paper |
|
1,998 |
|
|
|
5,985 |
|
Term debt |
|
10,954 |
|
|
|
9,822 |
|
Total current liabilities |
|
133,973 |
|
|
|
145,308 |
|
|
|
|
|
||||
Non-current liabilities: |
|
|
|
||||
Term debt |
|
95,088 |
|
|
|
95,281 |
|
Other non-current liabilities |
|
50,353 |
|
|
|
49,848 |
|
Total non-current liabilities |
|
145,441 |
|
|
|
145,129 |
|
Total liabilities |
|
279,414 |
|
|
|
290,437 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Common stock and additional paid-in capital, |
|
75,236 |
|
|
|
73,812 |
|
Retained earnings/(Accumulated deficit) |
|
8,242 |
|
|
|
(214 |
) |
Accumulated other comprehensive loss |
|
(9,378 |
) |
|
|
(11,452 |
) |
Total shareholders’ equity |
|
74,100 |
|
|
|
62,146 |
|
Total liabilities and shareholders’ equity |
$ |
353,514 |
|
|
$ |
352,583 |
|
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) |
|||||||
|
Three Months Ended |
||||||
|
December 30,
|
|
December 31,
|
||||
Cash, cash equivalents and restricted cash, beginning balances |
$ |
30,737 |
|
|
$ |
24,977 |
|
|
|
|
|
||||
Operating activities: |
|
|
|
||||
Net income |
|
33,916 |
|
|
|
29,998 |
|
Adjustments to reconcile net income to cash generated by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
2,848 |
|
|
|
2,916 |
|
Share-based compensation expense |
|
2,997 |
|
|
|
2,905 |
|
Other |
|
(989 |
) |
|
|
(317 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
6,555 |
|
|
|
4,275 |
|
Vendor non-trade receivables |
|
4,569 |
|
|
|
2,320 |
|
Inventories |
|
(137 |
) |
|
|
(1,807 |
) |
Other current and non-current assets |
|
(1,457 |
) |
|
|
(4,099 |
) |
Accounts payable |
|
(4,542 |
) |
|
|
(6,075 |
) |
Other current and non-current liabilities |
|
(3,865 |
) |
|
|
3,889 |
|
Cash generated by operating activities |
|
39,895 |
|
|
|
34,005 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Purchases of marketable securities |
|
(9,780 |
) |
|
|
(5,153 |
) |
Proceeds from maturities of marketable securities |
|
13,046 |
|
|
|
7,127 |
|
Proceeds from sales of marketable securities |
|
1,337 |
|
|
|
509 |
|
Payments for acquisition of property, plant and equipment |
|
(2,392 |
) |
|
|
(3,787 |
) |
Other |
|
(284 |
) |
|
|
(141 |
) |
Cash generated by/(used in) investing activities |
|
1,927 |
|
|
|
(1,445 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Payments for taxes related to net share settlement of equity awards |
|
(2,591 |
) |
|
|
(2,316 |
) |
Payments for dividends and dividend equivalents |
|
(3,825 |
) |
|
|
(3,768 |
) |
Repurchases of common stock |
|
(20,139 |
) |
|
|
(19,475 |
) |
Repayments of term debt |
|
— |
|
|
|
(1,401 |
) |
Repayments of commercial paper, net |
|
(3,984 |
) |
|
|
(8,214 |
) |
Other |
|
(46 |
) |
|
|
(389 |
) |
Cash used in financing activities |
|
(30,585 |
) |
|
|
(35,563 |
) |
|
|
|
|
||||
Increase/(Decrease) in cash, cash equivalents and restricted cash |
|
11,237 |
|
|
|
(3,003 |
) |
Cash, cash equivalents and restricted cash, ending balances |
$ |
41,974 |
|
|
$ |
21,974 |
|
|
|
|
|
||||
Supplemental cash flow disclosure: |
|
|
|
||||
Cash paid for income taxes, net |
$ |
7,255 |
|
|
$ |
828 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201247551/en/
Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142
Investor Relations Contact:
Suhasini Chandramouli
Apple
suhasini@apple.com
(408) 974-3123
Source: Apple Inc.
FAQ
What were Apple's financial results for Q1 2024?
What contributed to Apple's revenue growth for the December quarter?
What is the cash dividend declared by Apple's board of directors?
When is the dividend payable to shareholders?
What is the installed base of active devices for Apple?
