Apple Reports 1Q 2024 Results: $33.9B Profit on $119.6B Revenue

[nylonsteel]

sorta glad i decreased my aapl holdings a couple months ago
rolled into some a.i. stocks and a bit in meta
just wished i rolled more into meta
meta up over +10% in after hours trading at the moment
do your own due diligence when investing

 

[DelayedGratificationGene]

Wow did Tim just say artificial intelligence and tell us all about it later this year? Wow again

 

[lkrupp]

Yes, and it doesn't look too good. 🙁

Oh nonsense.

Apple takes top spot in China's smartphone market for the first time as Huawei returns to the top 5

Apple took the top spot in China's smartphone market in 2023 even as it faces renewed competition from domestic giant Huawei.

www.cnbc.com

iPhones are now the top sellers in China, even ahead of Huawei. You may want to consider retracting your inaccurate statement.

 

[Jim Lahey]

Base MacBook Pro soon shipping with 8.5GB of RAM 👍

 

[deepspacecowboy]

Meta lost $4.6B in one quarter in their Quest unit...

The market doesn't seem to care. If you bought Meta back in November 2022, just a little over a year ago, you would have more than 4x your investment today. I wish I had listened to Scott Galloway back then and bought it! It's kind of amazing how quickly Meta has rebounded back to previous highs despite the Metaverse disaster.

 

[2540497]

Why can’t they issue guidance? It’s been three years since Covid. There’s no excuse.

 

[sw1tcher]

Meta is up about 245% in the last 12 months taking into account after hours today.

Apple is up about 20% in the last 12 months taking into account after hours today.

Meta is not up about 245% in last 12 months taking into account after hours today, it's more like 140%.

You're both wrong. 🤣

2/1/2023 : Meta closed at $153.12.
2/1/2024: Meta after hours price $452.16

That's an increase of $299.04 or 195.3%

 

[MilaM]

Gross margin of 45.9%?!?! Good grief.

From the conference call: Services gross margin was 72.8%

 

[windowsblowsass]

How do u beat earnings when u never set no guidance last quarter

The numbers that need to be beat are never the companies own guidance but rather the “consensus” of the major investment firms

 

[deepspacecowboy]

So sales essentially flat, but margins up substantially… offering less innovation and product for the same price. I think we all knew that. The numbers just confirmed it.

Exactly. They're just squeezing more out of their existing customer base, not really growing anything. This strategy will work for a while, but without a significant new avenue for growth in a completely new market segment, the current kind of growth is not sustainable.

And let's be real. Services is basically iPhone revenue.

And the no guidance thing… there’s no excuse for not providing one. COVID and its economic impact ended a long time ago.

Agreed. They don't want to provide any sort of guidance because they don't want to toss even the tiniest crumb from which to extrapolate unit sales. They're keeping everyone focused on the growing profits, not how those profits are obtained. When the iPhone was selling more and more units every quarter, they touted unit sales with pride. They can't do that now.

 

[sunny5]

By looking at Mac's revenue, it only increased 1% compared to Q4, 2023 which is still far from COVID era revenue.

 

[75Batt]

Vision Pro. Apple’s new services platform. You want NFL, MLB or NBA on Vision in 3D with enhancements? New, more expensive subscription. Want 3D content on Max etc.? New, more expensive subscription.

Oh, loving all this expensive content? Just wait. Ads coming soon! Right in your FACE. I mean, unless you get the NEW, more expensive ad free subsciption.

And so on.

Absolutely ridiculous take

 

[erikkfi]

Internally, we've gotten a incredible amount of excitement from developers and from customers that can't wait till tomorrow to pick up their units.

And we're incredibly proud to be able to demo the unit in so many of our stores in the US starting tomorrow for people that want to check it out. And so we'll see and report the results of it in the Wearables category that that you're familiar with.

I think that if you look at it from a price point of view, there's an incredible amount of technology that's packed into the product. There's 5000 patents in the product and it's built on many innovations that Apple has spent multiple years on from, from silicon to displays and significant AI and machine learning. All the hand tracking, the room mapping, all this stuff is driven by AI. And so we're incredibly excited about it.

Who is this person that only seems to know adjectives based on "incredible"?

 

[Surf Monkey]

Absolutely ridiculous take

What do you find unrealistic about it? That content providers will charge a premium for Vision content? That the platform will be home to ads?

Because come on. Both of those ARE going to happen.

 

[contacos]

Have a shot every time Tim uses „incredible“ to have a fantastic evening tonight

 

[neuropsychguy]

So sales essentially flat, but margins up substantially… offering less innovation and product for the same price.

Margins are up because services are now over 19% of Apple's revenues. Services have gross margins of around 73%.

Your point about innovation might be true but you get way more product for the same price. Examples: the iPhone 15 Pro costs the same (without accounting for inflation) as the iPhone X. This makes the iPhone 15 Pro much less expensive (about 25%) than the iPhone X.

The base 15" mid year 2010 MacBook Pro launched at $1800 ($2500 in Dec 2023). The base 16" MacBook Pro costs $2500, which is way more computer for the money. The 14" MBP is the better comparison though, although the screen is smaller it is much higher resolution and much nicer. That computer starts at $2000 for the base "pro" model.

Sure, tech generally gets cheaper over time, but Apple is most likely keeping hardware prices somewhat lower, in part due to high services margins. Apple also increases some of the hardware margins by its high upgrade costs -- base models will have lower margins and the upgrades pull margins up.

What this means is margins are up for many reasons. Here is a translation of what Apple reported about margins:

Apple's overall profit margin before deducting operating expenses was 45.9%, which is a 0.7% increase compared to the previous period. This increase was mainly due to more efficient use of resources and a better combination of products and services sold. There was a slight negative impact from changes in currency exchange rates (meaning the dollar lost ground on average, which hurt Apple's finances a bit).

The profit margin for products was 39.4%, a 2.8% increase since the last period. This was due to more efficient resource use and selling more products with higher margins (e.g., upgrades at time of purchase), with a small reduction due to currency exchange rates. The profit margin for services was significantly higher at 72.8%, which is a 1.9% increase from the last quarter, mainly because the company had more people subscribing to high margin services (Apple doesn't specify what those are).

 

[jayducharme]

It amazes me how they keep breaking records (of one sort or another) quarter after quarter.

 

[antnythr]

Is Apple Making Implausible iPhone Satisfaction Claims? A 99% approval rating is nearly statistically impossible. Apple says it gets one every year.

 

[Ameer_1]

It's amazing how each year it is the same iPhone but they beat their record yearly, and yet they want to increase the price.

 

[5786735]

Who is this person that only seems to know adjectives based on "incredible"?

Superlative adjectives are an Apple trademark.

 

[DocMultimedia]

Why can’t they issue guidance? It’s been three years since Covid. There’s no excuse.

And there is no reason. If you believe in a company you invest. Otherwise don't. I always go with a simple approach. Has worked so far. 😀

 

[6787872]

I started a business in a very popular well maintained shopping mall but the mall owner wants to charge me rent?

Why is this?

I bought an apartment in a safe clean neighborhood but the local authorities want taxes to maintain the area?

Why is this?

Someone please explain to me like I'm 12 year old who has been exposed to the ideas of pirates, thieves and libertarians on 4chan.

did you just discover ayn rand?

 

[spazzcat]

Exactly. They're just squeezing more out of their existing customer base, not really growing anything. This strategy will work for a while, but without a significant new avenue for growth in a completely new market segment, the current kind of growth is not sustainable.

...

They just entered a new market, that market will grow.

 

[markgpearse]

These quarterly charts are ugly. There's got to be a better way.

 

[fathergll]

Sure, but they're growing at a faster rate than Apple.

For fiscal Q4 2024, Meta earned $5.33 per share, an increase of 202.8% from $1.76 per share a year ago.

Revenue grew 24.65% to $40.1 billion from $32.17 billion a year ago.

Compare that to Apple's 2.05% revenue growth and EPS growth of 15.96% ($2.18 vs $1.88 a year ago)

This has to be a troll post unless you have no clue how the stock market works. You do understand Meta's growth is based on them losing practically all of their value around a year ago?

If your idea of 'growth' is large % gainers then just day trade small cap pump and dump companies that can gain 202.8+% in one day let alone in a year.

Meta's also going to pay a 50 cent quarterly dividend. Apple? 24 cents.

Apple also declared a quarterly dividend payment of $0.24 per share, payable on February 15 to shareholders of record as of February 12.

Meta's net income during the quarter was $14 billion and they're going to pay a 50 cent dividend. Apple's net income during the quarter was $33.92 billion -- that's over 2x more than Meta's -- but Apple's only going to pay a 24 cent dividend (less than half of Meta's). Shows how cheap Apple is.

Why would a more stable company offer to pay a higher dividend? 🤣

To be fair this is Macrumors not Stockrumors so the analysis can be pretty silly here.