Apple's June, 2024, Earnings Report, Apple's 3Q24 -- No Longer All About iPhones; More And More All About Services -- Where Margins Probably Highest -- August 3, 2024

Locator: 48308AAPL.

Link here. 

This is probably as good a "3rd quarter" as ever for Apple. 

I had completely missed this: AAPL market cap now exceeds $1.4 trillion.

When one looks at the following, one really begins to ask why BRK would trim its position?

Look at these data points:

• installed base of active devices at all-time highs in all geographic segments
• all-time revenue record for SERVICES
• new June quarter records for BOTH revenue and EPS
• iPad revenue: notable increase thanks to introduction of new iPad Pro and iPad Air models
• most folks will wait for new iPad pending release of new software this autumn
• an increase in the gross margin from 44.5% one year ago to 46.2% this year (may or may not reflect inflation)
• revenue of $85.2 billion; up 5% from a year ago; may or may not reflect inflation
• EPS: this quarter, $1.40 vs $1.26 a year ago (11% increase in EPS)
• iPhone revenue now accounts for less than 50% of Apple's total revenue -- a longtime goal
• services revenue now accounts for more than a quarter of Apple's total revenue; one would think services has a huge, huge margin
• services revenue rose 14% in the quarter
• think of all the iPhones being used to pay at the checkout counter
  
• operating cash: $29 billion
• returned over $32 billion to shareholders during the quarter

2.5 billion installed active devices (there's some question what is being measured -- "installed active devices vs active users" -- I would assume installed active devices, but with regard to users, maybe divide active devices by three?

• each user has at least two Apple mobile devices: an iPhone and a laptop
• a majority of users have three Apple mobile devices: an iPhone, a laptop, a tablet
• some: four mobile devices, add the watch
• some: drop the watch, add a desktop
• some / most: pay monthly "service" fee for something
• warranty
• TV+
• storage (as low as 99 cents / month)

 

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Global Installed Devices

 

Link here.

 

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Ticker

 

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• I am inappropriately exuberant about the US economy and the US market, 
• I am also inappropriately exuberant about all things Apple. 
• See disclaimer. This is not an investment site. 
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• Reminder: I am inappropriately exuberant about the US economy and the US market, 
• I am also inappropriately exuberant about all things Apple.