AAPL Q4 2024 Earnings

Call Details

• Call Title: Apple Inc. Q4 2024 Earnings Call
• Date: October 31, 2024 at 9:00 PM UTC
• Management Team:
  • Suhasini Chandramouli (Director of Investor Relations)
  • Tim Cook (Chief Executive Officer)
  • Luca Maestri (Chief Financial Officer)
  • Kevan Parekh (Vice President of Financial Planning and Analysis)

Call Summary

Financial Performance

• Total company revenue was $94.9 billion, a September quarter record and up 6% year over year.
• Products revenue was $70.0 billion, up 4% year over year, driven by iPhone, iPad, and Mac.
• iPhone revenue was $46.2 billion, a September quarter record and up 6% year over year.
• Services revenue was $25.0 billion, an all-time record and up 12% year over year.
• Company gross margin was 46.2%, which management noted was near the high end of its guidance range.
• Products gross margin was 36.3%, up 100 basis points sequentially and described as primarily driven by favorable mix.
• Operating expenses were $14.3 billion, at the midpoint of prior guidance and up 6% year over year.
• GAAP net income was reduced by a one-time $10.2 billion income tax charge, and excluding that charge net income was $25.0 billion with diluted EPS of $1.64, up 12% year over year.

Guidance

• The company expects December quarter total company revenue to grow low to mid single digits year over year, assuming the macroeconomic outlook does not worsen.
• Services revenue is expected to grow double digits at a rate similar to fiscal 2024.
• Company gross margin is expected to be between 46% and 47% for the December quarter.
• Operating expenses are expected to be between $15.3 and $15.5 billion for the December quarter.
• Other income and expense is expected to be around negative $250 million, excluding potential mark-to-market on minority investments.
• The tax rate for the December quarter is expected to be around 16%.