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

[tgwaste]

33b profit in 1 quarter.. yet they really needed that extra $2 for apple one. thats why I hate them. give back to the customers who make you rich! AC+ should be free. iCloud storage should be free up to your device capacity. so 512 iphones, get 512 for free.

 

[HowEver]

How much of a difference does the 13 week quarter make compared to the previous 14 week quarter?

 

[Analog Kid]

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.

If you were smarter than all of Wall Street, and timed the market perfectly, you'd have 4 times the money. Hindsight isn't an investment strategy for anyone without a time machine.

My point though was that their business still isn't what they're saying their business is. The renamed the company to signal a push into the metaverse and they're bleeding cash in that space at a remarkable rate even this far in.

Also to show what happens when you underprice your hardware for mass adoption-- you may not get that adoption and lose a ton of money in the mean time. One estimate is that Meta sold 1M headsets in 4Q23, if that's the run rate they're continuing at then they're losing $1000 per customer gained.

 

[surfzen21]

Sure, from a smaller base. They're up where they were 12 months ago when they had just lost 3/4ths of their value.
View attachment 2344130

They're not a tenth as profitable as Apple is. They're losing a ton of money on what they imagine the future of the business to be. They're quite profitable reselling the data they steal, but they can't seem to find a business when their inputs have cost.

They named their company after the Metaverse, and their metaverse business is losing $4.65 billion dollars a quarter.

I'm and Apple fan and not a fan of most of META's products.

However, when it comes to my investments, my only concern is shareholder profitability. In that case, my Meta stock is doing much better than my Apple stock as of late. I bought Meta at various times after it crash.

But long term I'll hold Apple and deal with the dips or use it as an opportunity to buy. With Meta, I don't have the save long term vision.

 

[Analog Kid]

It's even/flat. People reading too much into this.

Nobody was reading anything into anything, in fact the point I made that you disagreed with was "don't read too much into anything because the numbers will continue changing."

What we were doing was discussing what numbers are more than and less than zero. Minus numbers are less than zero and you gave a screen shot showing -1.2% in red. You apparently disagreed with my pointing that out as evidence that the article's point that Apple was up and is now down on the day.

Currently at -3%.

Not any meaning to take from that really, but it is a fact that your down thumbs won't undo.

 

[surfzen21]

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%

I math'd very very wrong. 🥲

 

[SR 7]

So basically on track to do $120B in profit. That is NUTS

And people on this forum still think Apple raising the cost of the iPhone is necessary and not price gauging. lol. Imagine thinking a company that makes $120B in profit needs to raise the iPhone cost by $100 or they will not be able to provide the product while still making billions in profit.

 

[surfzen21]

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)

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.

After Zucks bump up in wealth he's probably going to scrap that bunker he was going to build on Kauai and just build another island off Hawaii instead. 😆

 

[Rogifan]

Nearly $34B in profit. On track to eventually report 50% gross margins on a company wide basis and people still defend Apple trying to squeeze every last penny out of consumers and developers as if they’re a company struggling to make ends meet. Weird.

 

[^^BIGMac]

"After rising over 1% in regular trading today and another 1% after hours in advance of the earnings release, Apple shares have given back all of those gains following the release."

And right now it's nearly back to even... instant overreaction and algo trading, as always.

People are really idiots. Apple continues to make money hand over fist yet the stock suffers...for what reason is hard tho imagine!

 

[5786735]

Nearly $34B in profit. On track to eventually report 50% gross margins on a company wide basis and people still defend Apple trying to squeeze every last penny out of consumers and developers as if they’re a company struggling to make ends meet. Weird.

The thing is Apple can get away with this for a while. It's a good strategy—short term. But it creates potential problems longer term. Funny thing is that there's a possibility they could likely make even more if they cut prices. I'm not sure what the price-elasticity-of-demand for iPhones is, but I suspect there are millions of potential customers kept at bay on a small pricing premium. 🤷‍♂️

P.S. I know all the arguments (Apple's a "premium" brand and Apple doesn't cater to the masses and Apple doesn't sell cheap crap). I've heard them all. So, if you're inclined, I already know them. Save your keystrokes.

 

[webkit]

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%

No.

I was comparing over a one year period which would be February 2, 2023 to February 1, 2024. You are are using February 1, 2023 to February 1, 2024 which would be a year and a day (two February 1sts).

Meta closed at $188.77 on February 2, 2023 and after hours today was around $452 which would make the increase around 140% as I stated.

 

[scarecrowmac]

Does anyone know why the revenue is so ‘spiky’ on that graph? Looks like everyone buys an iPhone all on the same day each quarter, but maybe it has something to do with reporting?

 

[eifelbube]

Yet the Macintosh division of Apple, if it were a stand alone company, would be a Fortune 500 based on revenue.

… and that would-be-Fortune 500 status despite the Mac allowing sideloading … 😊

 

[ThomasJL]

[sarcasm]
Wow, what great news—Apple is making several billions in profit! That, to me, is far more important than creating innovative products. Good job, Tim Cook! I am so glad you are CEO. Thank goodness Scott Forstall is not CEO because all he would've done is create products with excellent functionality, such as continuing to use highly user-friendly skeuomorphic design on all of Apple's operating systems. Also, Forstall would probably still be making Macs with consumer-friendly upgradable RAM and SSDs. What a loser! We don't need a visionary like him. We need someone with an MBA degree like Cook. Apple should not be about doing what's best for consumers. Apple should be about doing what's best for shareholders.
[/sarcasm]

 

[Analog Kid]

However, when it comes to my investments, my only concern is shareholder profitability. In that case, my Meta stock is doing much better than my Apple stock as of late.

That's true, though I also gate investments with other concerns-- I had a feeling the market may have overreacted to Meta undervalued it at the trough, but I really wasn't interested in helping them out of that hole (not that the $20 I could throw at it would move the needle perceptibly-- but it's the principle of the thing).

In the Meta vs Apple context today though, it's a "past performance is not an indication of future returns" situation. Meta can recover their earlier standing as an advertising juggernaut and data scalper, but I don't see them finding new businesses.

There's a question as to whether Apple may have plateaued, or if the market bid them up too far too quickly, but they're successfully growing their services segment which has some room to run, I think, and their valuation isn't outrageous.

 

[surfzen21]

That's true, though I also gate investments with other concerns-- I had a feeling the market may have overreacted to Meta undervalued it at the trough, but I really wasn't interested in helping them out of that hole (not that the $20 I could throw at it would move the needle perceptibly-- but it's the principle of the thing).

In the Meta vs Apple context today though, it's a "past performance is not an indication of future returns" situation. Meta can recover their earlier standing as an advertising juggernaut and data scalper, but I don't see them finding new businesses.

There's a question as to whether Apple may have plateaued, or if the market bid them up too far too quickly, but they're successfully growing their services segment which has some room to run, I think, and their valuation isn't outrageous.

I'll be nervous about Apple when Warren Buffet dumps them. Until then its all on board. And on that note my BRK-B has been one of my better long terms as well.

Who would have thought that juggernaut of an investor would know better than me.

 

[Maigrais]

Macs only 6.5 % of revenue. No wonder I'm feeling neglected as a long time Apple user.

That’s insanely small for the company. It makes sense. I found laptop nirvana with MacBook Pro with M2 Max chip. I’m satisfied.

 

[Maigrais]

The Mac vs iPad Revenue gap is growing larger. Apple has really decentivized the iPad in the span of three years, and now with the announcement that only iPhones are getting sideloading with DMA compliance but not iPads, there's now even less reason to buy iPads now. Guts of a Mac, but does a lot less than a Mac, and is more expensive than a Mac. There's no point in buying an iPad anymore unless you're an artist, just buy a Mac instead. Aside from the lack of a touch screen it can do everything an iPad can and a lot more, and it's battery life lasts vastly longer too.

That’s how I view it too now. iPads are more like MacBook Pro accessories. That’s how I think of mine. It is like an appliance. I won’t upgrade it unless it’s goes completely dead.

 

[firewood]

And people on this forum still think Apple raising the cost of the iPhone is necessary and not price gauging. lol. Imagine thinking a company that makes $120B in profit needs to raise the iPhone cost by $100 or they will not be able to provide the product while still making billions in profit.

If they don't maintain that profit margin, then tons of retired people, with investment portfolios containing Apple stock, will see their retirement savings gouged out due to the likely resulting drop in AAPL stock price. So raising prices is in fact anti-gouging.

 

[justanotherdave]

What I find interesting is the iPhone by itself had $69 billion in revenue.

Samsung overall had $51 billion.

I can remember a time when people said Apple would never catch Samsung because they sold products in so many markets besides just phones or computers.

Samsung MX Division (which makes smartphones, tablets, computers, wearables and network equipment) only had $19 billion. For anyone who thinks Galaxy smartphones are anywhere close to the iPhone for sales.

 

[Darren.h]

Thats pretty Scary how small and Flat Mac sales are.

Sorta makes you wonder how long the Mac will be around.

 

[ksj1]

FYI from Investopedia for those complaining about 'gross' margins:

Gross profit margin is the profit remaining after subtracting the cost of goods sold (COGS) from revenue. It expresses the relationship of profit to revenue as a percentage. Net profit margin is the profit that remains after subtracting both the COGS and operating expenses from revenue.

 

[krell100]

Surprising that Mac makes more than iPad. I wonder where Vision will fit, wearable or Mac?

 

[AndiG]

Apple is still a one trick pony. But this one trick is getting a bit long in the tooth.
The era of ai devices is now and there is no more Jobs to invent Apples version of an ai device.

Increasing the size of the camera lenses every year is no innovation, Apple (while decreasing the OS quality every year).