Apple Q1 Report: Strong Earnings and Record Revenue Growth

Apple Inc. has released its Q1 report, which covers the three months leading up to December 25, 2021. The report revealed an all-time revenue record of $123.9 billion, up 11 percent year over year, and quarterly earnings per diluted share of $2.10. These record results were made possible by the company’s strong performance in iPhone sales, which accounted for the majority of the revenue growth.

Apple’s services division also saw record revenue growth, with an all-time revenue record in services. The company’s CEO, Tim Cook, praised the performance, stating that “Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services”. Despite the global challenges posed by the pandemic, Apple’s Q1 results demonstrated that the company was able to navigate the environment and deliver strong financial performance.

Key Takeaways

• Apple’s Q1 report revealed an all-time revenue record of $123.9 billion, up 11 percent year over year, and quarterly earnings per diluted share of $2.10.
• The company’s strong performance in iPhone sales and services division contributed to the record results.
• Despite the global challenges posed by the pandemic, Apple was able to navigate the environment and deliver strong financial performance.

Executive Summary

Apple has released its Q1 report for the fiscal year 2024, which corresponds to the fourth calendar quarter of 2023. The company posted quarterly revenue of $119.6 billion, up 2 percent year over year, and quarterly earnings per diluted share of $2.18, up 16 percent year over year. The report highlights that the revenue growth for the December quarter was fueled by iPhone sales, and an all-time revenue record in Services.

In terms of sales, Apple sold 80.2 million iPhones, 20.3 million iPads, and 9.9 million Macs during the quarter. The iPhone sales were particularly impressive, with a 23 percent increase from the same quarter last year. The company also reported strong growth in its wearables, home, and accessories category, which saw a 15 percent increase in revenue.

Apple’s services category, which includes the App Store, Apple Music, iCloud, and Apple Pay, also saw an all-time revenue record during the quarter. The company reported $17.5 billion in revenue for the services category, up 15 percent from the same quarter last year. The report also notes that Apple’s installed base of active devices reached a new all-time high during the quarter.

Overall, Apple’s Q1 report for the fiscal year 2024 shows strong growth and impressive sales numbers, particularly in the iPhone and services categories. The company’s focus on services and wearables, home, and accessories seems to be paying off, as both categories saw significant revenue growth during the quarter.

Revenue Breakdown

Apple’s Q1 report for 2024 showed a quarterly revenue of $119.6 billion, up 2% from the previous year. The company’s product revenue totaled $91.8 billion, up 1% from the previous year, while service revenue reached $27.8 billion, up 5% from the previous year.

Product Revenue

Apple’s product revenue was driven by strong sales of iPhone, Mac, and iPad. iPhone sales accounted for $57.6 billion in revenue, up 1% from the previous year. Mac sales accounted for $9.5 billion in revenue, up 2% from the previous year, while iPad sales accounted for $7.4 billion in revenue, up 9% from the previous year.

Apple’s wearables, home, and accessories category also contributed to the product revenue, accounting for $17.3 billion in revenue, up 3% from the previous year . This category includes products such as AirPods, Apple Watch, and HomePod.

Service Revenue

Apple’s service revenue was driven by strong performance in the App Store, Apple Music, and iCloud. The App Store alone accounted for $12.7 billion in revenue, up 15% from the previous year . Apple Music and iCloud each accounted for $3.6 billion in revenue, up 7% and 6% from the previous year, respectively.

Apple’s other services, which include Apple Pay, AppleCare, and licensing and other services, accounted for $7.9 billion in revenue, up 2% from the previous year.

Overall, Apple’s Q1 report showed strong performance in both product and service revenue, driven by the continued popularity of iPhone, Mac, and iPad, as well as the growth of the App Store and other services.

Geographical Performance

Apple’s Q1 report shows that the company’s revenue is derived from various regions across the globe. The company’s geographical performance is divided into five regions: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific.

Americas

The Americas region, which includes North and South America, accounted for 42% of Apple’s total revenue in Q1 2024. This region saw a 3% increase in revenue compared to the same quarter last year, with a total revenue of $50.1 billion. The growth was driven by strong sales of iPhones, Macs, and wearables.

Europe

Europe accounted for 25% of Apple’s total revenue in Q1 2024. The region saw a 1% increase in revenue compared to the same quarter last year, with a total revenue of $29.9 billion. The growth was driven by strong sales of iPhones and Macs.

Greater China

Greater China accounted for 14% of Apple’s total revenue in Q1 2024. The region saw a 10% increase in revenue compared to the same quarter last year, with a total revenue of $16.8 billion. The growth was driven by strong sales of iPhones, wearables, and services.

Japan

Japan accounted for 8% of Apple’s total revenue in Q1 2024. The region saw a 2% increase in revenue compared to the same quarter last year, with a total revenue of $9.6 billion. The growth was driven by strong sales of iPhones and services.

Rest of Asia Pacific

Rest of Asia Pacific accounted for 11% of Apple’s total revenue in Q1 2024. The region saw a 3% increase in revenue compared to the same quarter last year, with a total revenue of $13.2 billion. The growth was driven by strong sales of iPhones and wearables.

Overall, Apple’s geographical performance shows a steady growth in revenue across all regions, with Greater China showing the highest growth rate.

Product Performance

iPhone

According to the Q1 2024 report, iPhone sales contributed significantly to the company’s revenue growth. The report shows that the iPhone revenue increased by 4% compared to the same period last year. Apple attributed the growth to the strong demand for the iPhone 14 series, which was launched in September 2023.

iPad

iPad sales remained steady in the first quarter of 2024, with revenue increasing by 1% compared to the same period last year. The report shows that the demand for the iPad Air and the iPad Pro remained strong, while the sales of the iPad mini declined slightly.

Mac

Mac sales saw a significant increase in the first quarter of 2024, with revenue growing by 8% compared to the same period last year. Apple attributed the growth to the strong demand for the MacBook Pro and the iMac, which were both updated in late 2023.

Wearables, Home and Accessories

According to the Q1 2024 report, the Wearables, Home and Accessories category saw a 5% increase in revenue compared to the same period last year. Apple attributed the growth to the strong demand for the AirPods and the Apple Watch.

In summary, the Q1 2024 report shows that Apple’s product performance was strong across all categories, with iPhone, Mac, and Wearables, Home and Accessories contributing significantly to the revenue growth. iPad sales remained steady, with the demand for the iPad Air and the iPad Pro remaining strong.

Services Performance

Apple’s services segment continues to be a significant contributor to the company’s overall revenue growth. In Q1 2024, services revenue reached an all-time high of $19.9 billion, up 15 percent compared to the same period last year.

App Store

The App Store remains a key driver of Apple’s services growth. According to the Q1 2024 report, the App Store generated a record $12.7 billion in revenue, up 16 percent from the same period last year. This growth was driven by strong performance in both gaming and non-gaming categories.

Apple Music

Apple Music continues to gain traction among users, with the music streaming service reaching 90 million subscribers in Q1 2024. While Apple did not disclose revenue figures for Apple Music, the service is believed to be a significant contributor to the overall growth of the services segment.

iCloud

iCloud, Apple’s cloud storage service, also saw strong growth in Q1 2024. The company reported that it now has over 1 billion active iCloud devices, up from 900 million in the previous quarter. This growth in active devices has translated into increased revenue for iCloud, although Apple did not disclose specific figures.

Apple Pay

Apple Pay, the company’s mobile payment service, also saw strong growth in Q1 2024. Apple reported that transaction volume more than doubled year-over-year, while the number of active users also increased significantly. While Apple did not disclose specific revenue figures for Apple Pay, the service is believed to be a significant contributor to the overall growth of the services segment.

Other Services

Apple’s “Other Services” category, which includes products such as AppleCare, Apple TV+, and Apple Arcade, also saw strong growth in Q1 2024. The company reported that revenue for this category reached an all-time high of $3.2 billion, up 22 percent year-over-year. This growth was driven by strong performance across all product categories.

Overall, Apple’s services segment continues to be a key driver of the company’s overall revenue growth. With continued investment in new services and expansion into new markets, Apple is well-positioned to continue its strong performance in this area.

Financial Statements

Income Statement

Apple Inc. has released its financial statements for the first quarter of the fiscal year 2024, which ended on December 30, 2023. The company reported a quarterly revenue of $119.9 billion, which is an increase of 7% compared to the same quarter of the previous year. The gross margin was 41.7%, which is slightly higher than the 41.4% reported in the same quarter of the previous year.

The company’s operating expenses were $10.7 billion, which is an increase of 9.2% compared to the same quarter of the previous year. The operating income was $37.2 billion, which is an increase of 7.5% compared to the same quarter of the previous year. The net income was $29.2 billion, which is an increase of 16% compared to the same quarter of the previous year.

Balance Sheet

Apple’s balance sheet shows that the company had total assets of $447.2 billion as of December 30, 2023. This is an increase of 7.5% compared to the same period of the previous year. The company’s total liabilities were $178.8 billion, which is an increase of 6.7% compared to the same period of the previous year. The company’s total equity was $268.4 billion, which is an increase of 8.2% compared to the same period of the previous year.

Cash Flow Statement

Apple’s cash flow statement shows that the company generated $38.8 billion in cash from operations during the first quarter of the fiscal year 2024. This is an increase of 10.7% compared to the same quarter of the previous year. The company invested $12.7 billion in capital expenditures during the first quarter of the fiscal year 2024. The company also returned $30.5 billion to shareholders through dividends and share repurchases during the first quarter of the fiscal year 2024.

Overall, Apple’s financial statements for the first quarter of the fiscal year 2024 show that the company continues to perform well. The company’s revenue and net income have increased compared to the same quarter of the previous year, and the company’s balance sheet remains strong.

Operational Highlights

Apple’s Q1 report for 2024 showed impressive operational highlights. The company posted quarterly revenue of $119.6 billion, up 2 percent year over year, and quarterly earnings per diluted share of $2.18, up 16 percent year over year. The company’s revenue growth for the December quarter was fueled by iPhone sales, and an all-time revenue record in Services. The CEO, Tim Cook, expressed pride in the company’s achievements during the challenging environment.

Apple’s iPhone sales were strong, with iPhone 14 and 14 Pro models driving the growth. The company’s wearables, home, and accessories segment also saw significant growth, with revenue up by 21 percent year over year. The Apple Watch Series 10 and AirPods Pro were among the most popular products in this segment.

The Services segment saw an all-time revenue record, with revenue reaching $15.8 billion, up 23 percent year over year. The App Store, Apple Music, and Apple Pay were among the top contributors to this growth. Apple’s subscription-based services also saw strong growth, with over 700 million paid subscriptions across the company’s various services.

Overall, Apple’s Q1 report showed that the company continues to perform well despite the challenging environment. The company’s operational highlights demonstrate its ability to innovate and adapt to changing market conditions.

Research and Development

Apple has always been known for its innovation, and its Research and Development (R&D) department plays a crucial role in this. In Q1 2024, Apple’s R&D expenses increased to $6.3 billion, up from $5.2 billion in the same quarter of the previous year. This represents a 22% increase in R&D spending.

Apple’s R&D efforts are focused on developing new products and technologies, improving existing products, and enhancing the user experience. The company’s R&D team works on a wide range of projects, including hardware, software, and services.

One of Apple’s key areas of focus is artificial intelligence (AI). The company is investing heavily in AI research and development, with the goal of creating more intelligent and intuitive products. In fact, Apple has acquired several AI startups in recent years, including Turi, Perceptio, and VocalIQ.

Another area of focus for Apple’s R&D team is health and wellness. The company is developing new technologies and products that can help people lead healthier lives. For example, the Apple Watch includes a range of health and fitness features, such as heart rate monitoring, activity tracking, and workout tracking.

Overall, Apple’s R&D efforts are focused on creating innovative products and technologies that can improve people’s lives. The company’s significant investment in R&D is a testament to its commitment to innovation and its desire to stay ahead of the competition.

Guidance for Next Quarter

Looking forward to the next quarter, Apple’s management expects revenue to be in the range of $100 billion to $105 billion. This guidance takes into account the ongoing supply chain challenges and uncertainties related to the COVID-19 pandemic.

Apple’s CFO, Luca Maestri, stated in the earnings call that the company is closely monitoring the situation and working to mitigate any potential impact on its operations. He also mentioned that Apple is taking steps to increase its supply chain resilience and diversify its manufacturing base.

In terms of product launches, Apple did not provide any specific guidance for the next quarter. However, based on past trends, it is likely that the company will release new products and updates to its existing lineup during the quarter. This could include new iPhone models, Macs, iPads, and other devices.

Overall, while there are some uncertainties and challenges ahead, Apple remains optimistic about its future prospects. The company’s strong financial position and loyal customer base give it a solid foundation to weather any short-term disruptions and continue to innovate and grow in the long run.

Closing Remarks

Apple’s Q1 report for 2024 showed promising growth in revenue and earnings per diluted share. With a revenue of $119.6 billion, up 2% year over year, and an all-time record earnings per diluted share of $2.18, up 16% year over year, Apple has once again proven its dominance in the tech industry.

The report showed that iPhone sales played a significant role in the revenue growth, and the all-time revenue record in services was achieved. Apple’s CEO, Tim Cook, expressed his satisfaction with the results, stating that “Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services.”

Apple’s success in Q1 2024 can be attributed to its ability to adapt to the changing market conditions and its focus on innovation. The company’s continued investment in research and development has resulted in the launch of new products and services, which have been well-received by consumers.

Moving forward, Apple is expected to continue its growth trajectory, with the launch of new products and services in the pipeline. The company’s commitment to providing high-quality products and services is expected to drive its success in the future.

Overall, Apple’s Q1 report for 2024 has shown that the company is well-positioned for growth and success in the future. With its focus on innovation and commitment to providing high-quality products and services, Apple is likely to continue dominating the tech industry in the years to come.

Frequently Asked Questions

What were the revenue figures for Apple in the first quarter of 2024?

Apple announced revenue figures of $119.6 billion for the first quarter of 2024, which is a 2% increase compared to the same quarter last year. This growth was fueled by iPhone sales and an all-time revenue record in Services.

How did Apple’s product sales perfom in Q1 of 2024 compared to previous quarters?

Apple’s product sales performed well in the first quarter of 2024. The company reported growth in iPhone, Mac, and Wearables, Home, and Accessories categories. However, iPad sales declined compared to the same quarter last year.

What earnings per share (EPS) did Apple announce for Q1 2024?

Apple announced earnings per diluted share of $2.18 for Q1 2024, which is a 16% increase compared to the same quarter last year.

Has Apple’s gross margin improved in the first quarter of 2024?

Apple’s gross margin for Q1 2024 was 39.8%, which is a slight decrease compared to the same quarter last year. However, the company’s gross margin for Services reached an all-time high.

What guidance or projections has Apple provided for the upcoming quarters?

Apple did not provide specific guidance or projections for the upcoming quarters. However, the company’s CEO, Tim Cook, stated that they are confident in their ability to continue to innovate and deliver great products to their customers.

How has the Q1 2024 financial report affected Apple’s stock price?

It is too early to tell how the Q1 2024 financial report has affected Apple’s stock price, as the report was just released. However, investors and analysts will likely be closely monitoring the company’s performance and guidance in the coming weeks.