• Revenue: $94.9 billion, a September quarter record, up 6% year over year.

• iPhone Revenue: $46.2 billion, a September quarter record, up 6% year over year.

• Mac Revenue: $7.7 billion, up 2% year over year.

• iPad Revenue: $7 billion, up 8% year over year.

• Wearables, Home, and Accessories Revenue: $9 billion, down 3% year over year.

• Services Revenue: $25 billion, an all-time record, up 12% year over year.

• Gross Margin: 46.2%, near the high end of guidance range.

• Products Gross Margin: 36.3%, up 100 basis points sequentially.

• Services Gross Margin: 74%, unchanged from the prior quarter.

• Operating Expenses: $14.3 billion, up 6% year over year.

• Net Income (excluding onetime tax charge): $25 billion.

• Diluted Earnings Per Share: $1.64, up 12% year over year.

• Operating Cash Flow: $26.8 billion, a new September quarter record.

• Cash and Marketable Securities: $157 billion.

• Total Debt: $107 billion.

• Net Cash: $50 billion.

• Shareholder Returns: Over $29 billion, including $3.8 billion in dividends and $25 billion in share repurchases.

• Warning! GuruFocus has detected 7 Warning Signs with INTC.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Apple Inc (NASDAQ:AAPL) reported a September quarter revenue record of $94.9 billion, up 6% year over year.

• iPhone revenue set a September quarter record of $46.2 billion, with growth in every geographic segment.

• Services achieved an all-time revenue record of $25 billion, up 12% year over year.

• The installed base of active devices reached an all-time high across all products and geographic segments.

• Apple Intelligence marks a new chapter for innovation, with features rolling out across iPhone, iPad, and Mac.

Negative Points

• Wearables, home, and accessories revenue was $9 billion, down 3% year over year.

• The company recorded a one-time income tax charge of $10.2 billion related to the reversal of a European General Court decision.

• Despite strong revenue growth, the gross margin for services remained unchanged from the prior quarter at 74%.

• The rollout of Apple Intelligence is staggered, which may affect the demand cadence across different regions.

• The company faces potential challenges from macroeconomic conditions and foreign exchange impacts, particularly in China.

Q & A Highlights

Q: Can you expand on the early feedback for Apple Intelligence and its impact on iPhone performance? A: Tim Cook, CEO: We've received positive feedback from developers and customers. The adoption rate for iOS 18.1 is twice as fast as the previous version, indicating strong interest. We plan to roll out more features and languages in the coming months, which we believe will enhance the iPhone experience.