Julie Clover
Today, Apple released its fiscal second quarter 2024 (first calendar quarter) earnings call, and Apple CEO Tim Cook and Apple CFO Luca Maestri provided us with some details on Apple's performance, Vision Pro sales and growth of services. , AI plans and other topics.
We've highlighted the most interesting findings from today's financial announcement results.
Announcements next week
Apple CEO Tim Cook said Apple is preparing for an “exciting product announcement” that the company believes “customers will love.”
Generative AI
Apple CEO Tim Cook said that Apple is making “significant investments” in artificial intelligence and that it has “very interesting things” that they will “share soon” with customers.
Cook also said that he believes Apple has “advantages that will differentiate” the company, including the integration of Apple hardware and software, the Apple processor with Neural Engine and an emphasis on privacy.
There is a “major opportunity” to bring generative artificial intelligence to all Apple devices , and Cook said he was “extremely optimistic” about future consumer demand.
Digital Markets Act
Cook said it was too early to identify security risks and the privacy implications of the changes it has made to the app ecosystem in Europe. Apple is committed to compliance while mitigating the impact on user privacy and security.
Vision Pro
Leading enterprise companies are 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 Apple is “very excited about the capabilities of spatial computing in the enterprise.”
Services
Apple's Services segment set a new all-time revenue record. $23.9 billion, up 14 percent from $20.9 billion in the year-ago quarter. Transactional and paid accounts reached new all-time highs, with paid accounts and subscriptions posting double-digit growth.
Apple has more than 1 billion paid subscriptions, more than double from four years ago.
Mac Sales
With the release of the new MacBook Air M3 models in March, Mac revenue increased to $7.5 billion. Mac sales were $7.17 billion in the year-ago quarter, an increase of four percent.
iPad sales
iPad revenue continued to fall as there were no new iPads released. for now. iPad Revenue was $5.6 billion, down 17 percent from $6.7 billion a year ago. iPad Sales should improve slightly in the next quarter as Apple plans to introduce new iPad Air and iPad Pro models next week.
Wearables
Wearables, Home & accessories sold for $7.9 billion, down 10 percent from last year. Last year, Apple released a USB-C version of the AirPods Pro, and this year was a “tough comparison.”
June Quarter
Maestri said Apple expects that revenue for the June quarter will grow by low single digits compared with last year, but services revenue growth is expected to be in the double digits, as well as iPad income.
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