So, like, Tim Cook, the big boss at Apple Inc., was doing his thing at the Apple Park campus in Cupertino, California on Monday, September 9, 2024. And guess what? Apple unveiled a new version of their smartwatch with a bigger screen that can actually detect sleep apnea. Cool, right? Oh, and they also talked about the new iPhone 16 smartphone. Exciting stuff, I guess. The event was captured by David Paul Morris from Bloomberg via Getty Images.
When Apple reported its earnings for the second fiscal quarter on Thursday, it did better than what Wall Street was expecting. But, you know, their Services division didn’t quite hit the mark. As a result, the company’s shares dropped more than 2% in after-hours trading. Here’s a breakdown of how Apple did compared to what everyone thought they would do:
– EPS: $1.65 vs. $1.63 estimated by LSEG
– Revenue: $95.4 billion vs. $94.66 billion estimated by LSEG
– iPhone revenue: $46.84 billion vs. $45.84 billion estimated
– Mac revenue: $7.95 billion vs. $7.77 billion estimated
– iPad revenue: $6.4 billion vs. $6.20 billion estimated
– Wearables, Home, and Accessories revenue: $7.52 billion vs. $7.95 billion estimated
– Services revenue: $26.65 billion vs. $26.70 billion estimated
– Gross margin: 47.1% vs. 47.1%
On a call with analysts, Apple usually gives some insights into how they see the upcoming quarter shaping up. People are super curious to hear what Tim Cook has to say about dealing with those tariffs the Trump administration is throwing around. Analysts are expecting third-quarter guidance of $1.48 in earnings per share on $89.45 billion of sales. Cook mentioned that Apple is getting a lot of its iPhones from India and most of its other products from Vietnam to avoid those pesky tariffs from China.
“I mean, like, over half of the U.S. sales of iPhone come from India now. And when it comes to Macs, iPads, AirPods, and Watches, it’s all about Vietnam,” Cook said. He also said that Apple is buying tons of chips from the U.S. for the iPhone. Way to support local businesses, right? Apple’s board also gave the green light for up to $100 billion in share repurchases this quarter and bumped up the dividend to 26 cents per share.
The company’s earnings came in at $1.65 per share with $24.78 billion in net income for the quarter, compared to $23.64 billion or $1.53 per share last year. iPhones are still Apple’s golden goose, bringing in $46.8 billion in sales during the quarter. The overall product line saw a modest 2% increase in sales compared to last year. The Services division, which includes iCloud, Apple Music, and other fun stuff, had “double-digit” growth with $26.65 billion in revenue, up 11.65% from last year. Not bad, I guess.
Mac sales went up by almost 7% to nearly $8 billion, and iPad sales jumped 15% to $6.4 billion. But, you know, the wearables division, which covers Apple Watch and AirPods, took a bit of a hit with a 5% decline in revenue to $7.52 billion. Sales in Greater China were down a bit at $16 billion, but Cook said they would’ve been flat if not for exchange rates messing things up. On the flip side, sales in the Americas, Apple’s biggest market, went up by almost 8%. Not too shabby.
So, yeah, Apple seems to be doing alright despite some bumps in the road. Cook doesn’t think the tariffs caused a rush in orders, and things are looking pretty stable for now. Stay tuned for more updates on this hot topic. Peace out!
