AAPL Q2 2024 Earnings

Call Details

• Call Title: Apple Inc. Q2 2024 Earnings Call
• Date: May 2, 2024 at 9:00 PM UTC
• Management Team:
  • Suhasini Chandramouli (Director of Investor Relations)
  • Tim Cook (Chief Executive Officer)
  • Luca Maestri (Chief Financial Officer)

Call Summary

Financial Performance

• Company revenue for the March quarter was $90.8 billion, down 4% from last year.
• Diluted EPS was a March quarter record of $1.53 and net income was $23.6 billion for the quarter.
• Products revenue was $66.9 billion, down 10% year over year, and services revenue was $23.9 billion, up 14% year over year.
• Company gross margin was 46.6%, which was up 70 basis points sequentially and benefited from cost savings and favorable mix to services.
• Products gross margin was 36.6%, which declined 280 basis points sequentially due primarily to seasonal loss of leverage and mix.
• Services gross margin was 74.6%, up 180 basis points sequentially, and operating expenses were $14.4 billion, up 5% year over year.

Guidance

• The June quarter outlook expects total company revenue to grow low single digits year over year with a foreign exchange headwind of about 2.5 percentage points.
• Services are expected to grow double digits in the June quarter at a rate similar to the first half of the fiscal year.
• iPad revenue is expected to grow double digits in the June quarter.
• June quarter gross margin is expected between 45.5% and 46.5%.
• Operating expenses are expected between $14.3 billion and $14.5 billion for the June quarter.
• Other income and expense is expected to be around $50 million excluding mark-to-market of minority investments and the tax rate is expected to be around 16%.