UPDATED with entertainment comments: Apple CEO Tim Cook gave a shoutout to upcoming Wolves set for theatrical release this fall, Sony distributing. Comedy series Palm Royale with Kristen Wiig and Laura Dern, and Colin Farrell-starring detective skein Sugar also got a plug. Apple’s entertainment business, Apple Studio and Apple TV+ are buried in the Services division (a massive $23.8 billion business last quarter with music, games, Apple Pay and more) but it’s the only one Cook routinely comments on during Apple’s post-earnings conference calls, like today’s.
He keeps a running tally each quarter of Apple TV+ award nominations (2,100) and wins (480) for Apple TV+ productions since the service launched. “We have some incredible theatrical releases coming this year, including Wolfs, which reunites George Clooney and Brad Pitt,” he said.
Services grew 14% in the current June quarter and CFO Luca Maestri see a similar bump in the current June quarter. He is always super careful not to pick out specific strands but said there were records in several categories and geographies in developed and emerging markets. He said Services has passed $1 billion subscriptions thanks in part to a built-in install base of Apple iPhones and iPads.
PREVIOUSLY: Apple’s fiscal Q2 numbers beat Wall Street estimates on the top and bottom line in a market that was waiting for them with some trepidation — mainly news of iPhone sales in China. The dip there was less than anticipated. The stock is up more than 7% in after-hours trading.
Apple shares had huge 2023 but the stock has been nearly along among the so-called Magnificent seven tech stock to lose ground so far in 2024.
Services revenue, which houses Apple TV +, music, games and a host of others platforms, was a standout with sales up $3 billion to $23.9 billion. Execs may give some details on a call starting at 5 pm ET.
The company announced a massive share buyback program and a dividend boost.
Apple posted $90.75 billion in revenue for the three months ended in March. Net income eased slightly to $23.6 billion (from $24.2 billion). EPS was flat at $1.53.
Iphone sales of $45.96 million fell from $51 billion. Sales in Greater China, where Apple has been facing heightened competition, were $16.3 billion from $17.8 billion, but there were up in mainland China. Sales rose Europe. Mac sales rose 7%.
“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.”
“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter,” said Luca Maestri, Apple’s CFO. “Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $110 billion for share repurchases. We are also raising our quarterly dividend for the twelfth year in a row.”