Saturday, August 3, 2024

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
 
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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. 
  • Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.
  • Reminder: I am inappropriately exuberant about the US economy and the US market, 
  • I am also inappropriately exuberant about all things Apple.   

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