Apple's financial report: Apple's total revenue in Q3 of fiscal year 2024 was US$85.8 billion, a year-on-year increase of 5%

Apple recently held a third-quarter earnings conference call for fiscal year 2024 (unlike the natural year, Apple's fiscal year 2024 is from October 2023 to September 2024).

Apple CEO Tim Cook noted in the report that it was the "best June quarter to date" with revenue higher than expected. Cook and Apple CFO Luca Maestri also provided an in-depth analysis of Apple's performance, iPad sales, service growth, AI initiatives, and more.

In addition, regarding the iPhone 16 series to be released in September, Cook said that the company is "very excited" about Apple Intelligence and the level of value Apple will provide to users. Cook is very confident about the iPhone 16 series and believes that Apple Intelligence provides "another compelling reason to upgrade."

About Apple Intelligence

Cook said that Apple can't wait to see developers use Apple Intelligence to make amazing developments. At the same time, Apple expects developers to widely adopt Apple Intelligence in their applications, and its functions can be applied to a variety of types of applications.

Cook confirmed that Apple plans to roll out Apple Intelligence features in phases, with some features launching this year and not available in languages ​​other than U.S. English at launch.

Apple Intelligence is a joint development between Apple and OpenAI. Apple also announced at WWDC that ChatGPT will be integrated with Siri, a process expected to be realized before the end of this year. Apple also stated that the company is increasing its investment in artificial intelligence and machine learning, and plans to increase it year by year.

However, it should be noted that Apple Intelligence may be "out of reach" for domestic users. Domestic licensed iPhones are temporarily unable to access Apple Intelligence, and non-domestic iPhone users need to enable Apple Intelligence in settings and join the waiting list to obtain access.

During the conference call, when talking about the European and Chinese markets, Cook only promised that Apple Intelligence would be available to all Apple users around the world, and did not provide any further details.

Revenue performance

Thanks to the launch of the M4 iPad Pro and M2 iPad Air this quarter, Apple's iPad sales ushered in a significant increase, with iPad revenue of US$7.2 billion, up 24% from US$5.8 billion in the same period last year . iPhone revenue fell 1% ($39.3 billion), Mac revenue increased 2% ($7 billion), and home, accessories and wearables revenue fell 2% ($8.1 billion).

At the same time, Apple, which has always claimed that it is not a hardware company, has seen a significant increase in service revenue, reaching $24.2 billion, a 14% increase from last year's $21.2 billion, setting a record high.

Apple's paid subscriptions hit an all-time high, with more than 1 billion paid subscriptions across all services, and Apple set new records in advertising, cloud and payment services.

Apple Chief Financial Officer Luca Maestri said Apple is seeing continued growth in customer engagement with its ecosystem. Maestri also said Apple is doing "very good" in improving the quality of its services and increasing the amount of content available. The company also plans to continue adding new Apple TV+ and Apple Arcade content.

About the Digital Markets Act

Luca Maestri said Apple is continuing to discuss its DMA compliance with the European Commission. Apple has seen "high acceptance" of these changes from developers, and overall, the performance of the services business and the App Store "has been quite good so far." Maestri reiterated that the App Store accounts for 7% of Apple's total revenue in the EU.

Cook said Apple is working to understand the regulatory requirements before launching Apple Intelligence in the European Union. Apple Intelligence features will not be available in the European Union when iOS 18, iPadOS 18, and macOS Sequoia are released.

About the September Quarter

Apple said it expects September quarter revenue to grow at a similar rate to the June quarter. Services revenue is expected to grow at a double-digit rate, similar to the rest of the year, with gross margins expected to be 45.5% and 46.6%, respectively.

Maestri said Mac performance will be challenging compared to the same period last year as the 15-inch MacBook Air in the fall of 2023 will have an impact on the entire quarter, and there are rumors that Apple may see an updated M4 MacBook Pro before the end of the year, but if Apple expects Mac revenue to decline, that may not happen.

Tianji.com