Apple at present held its earnings name for the second fiscal quarter of 2024 (first calendar quarter), with Apple CEO Tim Cook and Apple CFO Luca Maestri offering us with some particulars on Apple’s efficiency, Imaginative and prescient Professional gross sales, providers development, AI plans, and different subjects.
We have highlighted essentially the most attention-grabbing takeaways from at present’s earnings name.
Subsequent Week’s Bulletins
Apple CEO Tim Cook dinner mentioned Apple is prepping for “an thrilling product announcement” that the corporate thinks “clients will love.” Cook dinner additionally instructed CNBC that Apple has “huge plans to announce” from an “AI viewpoint.”
Generative AI
Apple CEO Tim Cook dinner mentioned that Apple is making “vital investments” in AI, and that it has some “very thrilling issues” to share with clients “quickly.”
Cook dinner additionally mentioned that he believes Apple has “benefits that can differentiate” the corporate, together with Apple’s {hardware} and software program integration, Apple silicon with Neural Engine, and deal with privateness.
There is a “huge alternative” for generative AI throughout all of Apple’s units, and Cook dinner mentioned he’s “extraordinarily optimistic” about future client demand.
Digital Markets Act
Cook dinner mentioned that it is too early to find out the safety dangers and privateness implications of the modifications that it has made to the app ecosystem in Europe. Apple is concentrated on complying whereas mitigating impacts to person privateness and safety.
Imaginative and prescient Professional
Main enterprise corporations have been investing in Imaginative and prescient Professional, and Apple is seeing it used for issues like plane engine upkeep, real-time collaboration for racing, and immersive kitchen design. Cook dinner mentioned that Apple “could not be extra excited in regards to the spatial computing alternative in enterprise.”
Companies
Apple’s providers phase set a brand new all-time income document of $23.9 billion, up 14 p.c from $20.9 billion within the year-ago quarter. Transacting accounts and paid accounts reached a brand new all-time excessive, with paid accounts and subscriptions displaying double digit development.
Apple has greater than 1 billion paid subscriptions, greater than double the quantity from 4 years in the past.
Mac Gross sales
With the launch of recent M3 MacBook Air fashions in March, Mac income noticed development, reaching $7.5 billion. Mac gross sales had been at $7.17 billion within the year-ago quarter, for 4 p.c development.
iPad Gross sales
iPad income continued to drop with no new iPads launched in 2024 as of but. iPad income was at $5.6 billion, down 17 p.c from $6.7 billion a yr in the past. iPad gross sales ought to see some enchancment subsequent quarter as Apple subsequent week is planning to unveil new iPad Air and iPad Pro fashions.
Wearables
Wearables, House and Equipment got here in at $7.9 billion, down 10 p.c in comparison with final yr. Final yr, Apple had launched the USB-C model of AirPods Pro, and there was a “troublesome examine” this yr.
June Quarter
Maestri mentioned that Apple expects June quarter income to develop low single digits year-over-year, however Companies is predicted to develop double digits, as is iPad income.