Apple's Q2 2024 Earnings Call Takeaways

[MacRumors]

Apple today held its earnings call for the second fiscal quarter of 2024 (first calendar quarter), with Apple CEO Tim Cook and Apple CFO Luca Maestri providing us with some details on Apple's performance, Vision Pro sales, services growth, AI plans, and other topics.

We've highlighted the most interesting takeaways from today's earnings call.

Next Week's Announcements

Apple CEO Tim Cook said Apple is prepping for "an exciting product announcement" that the company thinks "customers will love."

Generative AI

Apple CEO Tim Cook said that Apple is making "significant investments" in AI, and that it has some "very exciting things" to share with customers "soon."

Cook also said that he believes Apple has "advantages that will differentiate" the company, including Apple's hardware and software integration, Apple silicon with Neural Engine, and focus on privacy.

There's a "big opportunity" for generative AI across all of Apple's devices, and Cook said he is "extremely optimistic" about future consumer demand.

Digital Markets Act

Cook said that it's too early to determine the security risks and privacy implications of the changes that it has made to the app ecosystem in Europe. Apple is focused on complying while mitigating impacts to user privacy and security.

Vision Pro

Leading enterprise companies have been investing in Vision Pro, and Apple is seeing it used for things like aircraft engine maintenance, real-time collaboration for racing, and immersive kitchen design. Cook said that Apple "couldn't be more excited about the spatial computing opportunity in enterprise."

Services

Apple's services segment set a new all-time revenue record of $23.9 billion, up 14 percent from $20.9 billion in the year-ago quarter. Transacting accounts and paid accounts reached a new all-time high, with paid accounts and subscriptions showing double digit growth.

Apple has more than 1 billion paid subscriptions, more than double the number from four years ago.

Mac Sales

With the launch of new M3 MacBook Air models in March, Mac revenue saw growth, reaching $7.5 billion. Mac sales were at $7.17 billion in the year-ago quarter, for four percent growth.

iPad Sales

iPad revenue continued to drop with no new iPads released in 2024 as of yet. iPad revenue was at $5.6 billion, down 17 percent from $6.7 billion a year ago. iPad sales should see some improvement next quarter as Apple next week is planning to unveil new iPad Air and iPad Pro models.

Wearables

Wearables, Home and Accessories came in at $7.9 billion, down 10 percent compared to last year. Last year, Apple had launched the USB-C version of AirPods Pro, and there was a "difficult compare" this year.

June Quarter

Maestri said that Apple expects June quarter revenue to grow low single digits year-over-year, but Services is expected to grow double digits, as is iPad revenue.

Article Link: Apple's Q2 2024 Earnings Call Takeaways

 

[surfzen21]

Sales slightly down and profits slightly up!

Stock popped after hours. Wonder what it will look like in the morning.

 

[Regret]

Do you think the AI comment in reference to next week’s event could be a sign that the M4 iPad rumours are true?

 

[TVreporter]

Apple is doo…. Doing Ok!

Wish investors would really press Tim for more direct answers. His spin on Apple Vision Pro was skirting given how much they invested in the project.

 

[sw1tcher]

Digital Markets Act

Cook said that it's too early to determine the security risks and privacy implications of the changes that it has made to the app ecosystem in Europe. Apple is focused on complying while mitigating impacts to user privacy and security....

... and App Store/Services revenue

 

[sw1tcher]

Vision Pro

Leading enterprise companies have been investing in Vision Pro, and Apple is seeing it used for things like aircraft engine maintenance...

I wonder if Boeing could benefit from the Vision Pro. Couldn't hurt, right?

 

[The Game 161]

Services killing it and will remain the main strength going forward

 

[Tofupunch]

Sales slightly down and profits slightly up!

Stock popped after hours. Wonder what it will look like in the morning.

seriously. I'm thinking a huge sell off. Seems to be the trend this earnings season

 

[surfzen21]

seriously. I'm thinking a huge sell off. Seems to be the trend this earnings season

I admittedly didn't listen to the earnings call so its hard for me to say, but if they teased enough of a roadmap for AI then I think the outlook long term will be a buy under $180 with a year out at $225.

 

[lkrupp]

Apple is doo…. Doing Ok!

Wish investors would really press Tim for more direct answers. His spin on Apple Vision Pro was skirting given how much they invested in the project.

You can always tell when Apple is doing well by counting the posts. When the news is good the critics keep quiet. When there’s a problem you’ll see 200-300 posts expounding on Apple’s failure.

 

[Macalway]

Do you think the AI comment in reference to next week’s event could be a sign that the M4 iPad rumours are true?

Perfunctory guidance, with little substance. Don't expect this M4 next week

 

[I7guy]

It’s my opinion the iPhone 16 will be a killer product.

 

[Harry Haller]

It’s my opinion the iPhone 16 will be a killer product.

In what respect and what will it kill?

 

[supersteve]

revealing that half of Fortune 100 companies have bought Apple Vision Pro units and are exploring ways to use them for business. "An exciting product announcement" next week "that we think our customers will love."

Let’s hope the announcement next week is that the Apple Vision Pro will launch in Canada May 7th, along with visionOS 2.0.

I am a customer and I would love that.

 

[klasma]

I wonder if Boeing could benefit from the Vision Pro. Couldn't hurt, right?

Maybe they’ve been using prototypes for their aircraft maintenance.

 

[coffeemilktea]

So many people on MacRumors like to criticize Tim Cook, but the shares of Apple stock I bought think he's an okay guy. 👍

 

[Macalway]

So many people on MacRumors like to criticize Tim Cook, but the shares of Apple stock I bought think he's an okay guy. 👍

This. If we make money he's golden. If we we lose money he's gone.

 

[klasma]

It’s my opinion the iPhone 16 will be a killer product.

Weren’t they trying the opposite with features like Crash Detection and Emergency SOS via satellite?

 

[tkaravou]

- No iPads last year
- No AirPods last year (other than a USB-C Case)
- Apple Watch 9’s main new sensor had to be disabled

New iPads next week, new AirPods this year, Apple Watch X.

I think they’ll be fine.

 

[omenatarhuri]

Kind of hard to see what they think of Vision Pro? Is it one of those Apple TV like things they throw out there and forget about or is it being pushed to be more substantial?

 

[Abobrek]

Not a good look for Apple Vision Pro when Tim is highlighting its’ use in enterprise. Magic Leap and HoloLens have gone this route, but both are TRUE AR. Apple has no clue how to market Apple Vision Pro at this point.

 

[TimHalfCooked]

Services is expected to grow double digits

double the price of all the storage plans!

 

[TracesOfArsenic]

Not a good look for Apple Vision Pro when Tim is highlighting its’ use in enterprise. Magic Leap and HoloLens have gone this route, but both are TRUE AR. Apple has no clue how to market Apple Vision Pro at this point.

Think of all the revolutionary kitchens that have been designed, bro!

 

[Bodhitree]

Seems like Apple doesn’t feel under significant pressure. That’s a good thing.

 

[GrayFlannel]

1. No mention of the buyback. My takeaway: propping up the stock price.
2. “Leading enterprise companies have been investing in Vision Pro…” My takeaway: Vision Pro will be relevant when Apple invests in it by buying it for all their employee’s workstation. Apple needs to put up or shut up on this gimmicky product.

Apple today held its earnings call for the second fiscal quarter of 2024 (first calendar quarter), with Apple CEO Tim Cook and Apple CFO Luca Maestri providing us with some details on Apple's performance, Vision Pro sales, services growth, AI plans, and other topics.

We've highlighted the most interesting takeaways from today's earnings call.

Next Week's Announcements

Apple CEO Tim Cook said Apple is prepping for "an exciting product announcement" that the company thinks "customers will love."

Generative AI

Apple CEO Tim Cook said that Apple is making "significant investments" in AI, and that it has some "very exciting things" to share with customers "soon."

Cook also said that he believes Apple has "advantages that will differentiate" the company, including Apple's hardware and software integration, Apple silicon with Neural Engine, and focus on privacy.

There's a "big opportunity" for generative AI across all of Apple's devices, and Cook said he is "extremely optimistic" about future consumer demand.

Digital Markets Act

Cook said that it's too early to determine the security risks and privacy implications of the changes that it has made to the app ecosystem in Europe. Apple is focused on complying while mitigating impacts to user privacy and security.

Vision Pro

Leading enterprise companies have been investing in Vision Pro, and Apple is seeing it used for things like aircraft engine maintenance, real-time collaboration for racing, and immersive kitchen design. Cook said that Apple "couldn't be more excited about the spatial computing opportunity in enterprise."

Services

Apple's services segment set a new all-time revenue record of $23.9 billion, up 14 percent from $20.9 billion in the year-ago quarter. Transacting accounts and paid accounts reached a new all-time high, with paid accounts and subscriptions showing double digit growth.

Apple has more than 1 billion paid subscriptions, more than double the number from four years ago.

Mac Sales

With the launch of new M3 MacBook Air models in March, Mac revenue saw growth, reaching $7.5 billion. Mac sales were at $7.17 billion in the year-ago quarter, for four percent growth.

iPad Sales

iPad revenue continued to drop with no new iPads released in 2024 as of yet. iPad revenue was at $5.6 billion, down 17 percent from $6.7 billion a year ago. iPad sales should see some improvement next quarter as Apple next week is planning to unveil new iPad Air and iPad Pro models.

Wearables

Wearables, Home and Accessories came in at $7.9 billion, down 10 percent compared to last year. Last year, Apple had launched the USB-C version of AirPods Pro, and there was a "difficult compare" this year.

June Quarter

Maestri said that Apple expects June quarter revenue to grow low single digits year-over-year, but Services is expected to grow double digits, as is iPad revenue.

Article Link: Apple's Q2 2024 Earnings Call Takeaways