Apple announces second quarter 2024 financial results, declines in revenue and profits but implements record share buybacks
Apple has announced its financial results for the second quarter of fiscal 2024 (January to March). Apple's sales for the same period were down 4% year-on-year to $90.8 billion (approximately 13.9 trillion yen), due to sluggish iPhone sales in China, and net profit was down 2% year-on-year to $23.6 billion (approximately 3.62 trillion yen).
Apple Reports Second Quarter Results - Apple (UK)
Apple (AAPL) earnings report Q2 2024
https://www.cnbc.com/2024/05/02/apple-aapl-earnings-report-q2-2024.html
Apple beats Wall Street consensus with $90.75B revenue
https://appleinsider.com/articles/24/05/02/apple-blows-away-wall-street-earnings-guesses-even-with-weak-china-iphone-sales
According to Apple's financial results for the second quarter of fiscal 2024, total sales for the period were down 4% year-on-year to $90.8 billion, and net income was down 2% year-on-year to $23.6 billion.
Apple's sales are divided into five categories, with the breakdown of each being as follows: While Apple's flagship products such as the iPhone, iPad, and Mac have all seen a decline in sales compared to the same period last year, only the services division has maintained a strong performance. According to Apple, the services division recorded its highest-ever sales in the second quarter of fiscal 2024. The Wearables, Home & Accessories category includes sales of products and accessories such as the Apple Watch, AirPods, and HomePod.
iPhone: $46 billion (approximately 7.5 trillion yen): down 10% from the same period last year
iPad: $5.56 billion (approximately 852 billion yen): Down 17% from the same period last year
Mac: $7.45 billion (approximately 1.14 trillion yen): 4% increase from the same period last year
Wearables, Home & Accessories: $7.91 billion (approximately 1.21 trillion yen): down 10% from the same period last year
Services: $23.9 billion (approximately 3.66 trillion yen): 14% increase from the same period last year
The following graph summarizes Apple's quarterly total revenue and net profit since the second quarter of 2015.
'Today, Apple reported $90.8 billion in revenue in the March quarter and all-time records for Services revenue,' said Apple CEO Tim Cook. 'During the quarter, we launched Apple Vision Pro and were thrilled to show the world the possibilities of spatial computing. We also look forward to exciting
Cook also pointed out that sales of the iPhone 14, which was released in 2022, were delayed due to supply issues , and noted that it is difficult to simply compare second quarter sales in fiscal 2023 and fiscal 2024. Furthermore, he said, 'If you subtract $5 billion (the sales growth generated in the second quarter of fiscal 2023 due to the delay in supply of the iPhone 14) from the second quarter of fiscal 2023 results, this quarter will have grown,' explaining that taking into account supply issues for the iPhone 14, the second quarter of fiscal 2024 results were not bad.
Apple's CFO Luca Maestri also commented, 'Thanks to extremely high customer satisfaction and loyalty, our installed base of active devices reached an all-time high across all product and geographic segments, and our financial results achieved our highest EPS in the January-March quarter. Given our confidence in Apple's future and the value of Apple's stock, the Board of Directors authorized an additional $110 billion in stock repurchases. We are also increasing our quarterly dividend for the 12th consecutive year.' Although Apple recorded a decrease in revenue and profits this quarter, the amount of stock repurchases increased by 22% compared to the same period last year, and according to data from Birinyi Associates, it is the largest amount of Apple's stock buybacks ever.
Apple announced a cash dividend of $0.25 per share of its common stock, an increase of 4 percent from the same period last year, payable on May 16, 2024 to shareholders of record as of the close of trading on May 13, 2024.
Apple hasn't provided earnings guidance for the next quarter, but CEO Tim Cook told CNBC that the company expects total revenue to grow in the low single digits in the third quarter of fiscal 2024.
In addition, when comparing Apple's sales by region, the largest are the United States (about 41%), Europe (about 27%), China (about 18%), Japan (about 7%), and other Asian countries (about 7%), but sales in China, which records the third largest sales for Apple, decreased by 8% compared to the same period last year. However, this figure seems to exceed the expectations of market analysts, and CNBC points out that the result eases concerns that 'iPhone is losing market share to Chinese smartphones in China.'
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