UPDATED with entertainment commentary: Tim Cook, CEO of Apple, welcomed what was coming Wolves The theatrical release is planned for this fall and Sony is distributing it. comedy series Palm Royale with Kristen Wiig and Laura Dern and Colin Farrell with Detective Skein Sugar I also got a plug. Apple’s entertainment business, Apple Studios, 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 that Cook comes to routinely comments during Apple’s earnings calls. as today.
Since the service launched, it has maintained a quarterly running tally of Apple TV+ Award nominations (2,100) and wins (480) for Apple TV+ productions. “We have some incredible theatrical releases coming up this year including Wolfsthat reunites George Clooney and Brad Pitt,” he said.
The services sector grew 14% in the current June quarter, and CFO Luca Maestri expects a similar increase in the current June quarter. He is always careful not to single out any specific areas, but said there are records across multiple categories and regions in developed and emerging markets. He said Services has reached over $1 billion in subscriptions, thanks in part to an integrated install base of Apple iPhones and iPads.
PREVIOUSLY: Apple’s second-quarter earnings beat Wall Street’s revenue and profit estimates in a market that was awaiting them with some trepidation – mainly news about iPhone sales in China. The decline there was less than expected. The stock is up more than 7% in after-hours trading.
Apple stock has seen tremendous growth in 2023, but the stock is among the so-called “Magnificent Seven” tech stocks that have lost ground so far in 2024.
Services revenue stood out, which includes Apple TV+, music, games and a variety of other platforms. Sales rose $3 billion to $23.9 billion. Executives may provide some details on a call beginning at 5:00 p.m. ET.
The company announced a major share buyback program and a dividend increase.
Apple posted revenue of $90.75 billion in the three months ended March. Net income fell slightly to $23.6 billion (from $24.2 billion). Earnings per share were unchanged at $1.53.
iPhone sales fell from $51 billion to $45.96 million. Sales in Greater China, where Apple faced increased competition, were $16.3 billion versus $17.8 billion, but there was an increase in mainland China. Sales increased in Europe. Mac sales rose 7%.
“Today, Apple reports March quarter revenue of $90.8 billion, including record services revenue,” said Apple CEO Tim Cook. “During the quarter, we were excited to launch Apple Vision Pro and show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible global developer conference next month. As always, we are focused on providing our customers with the very best products and services while living up to the core values that drive us.”
“Thanks to very high customer satisfaction and loyalty, our active installed device base reached a new all-time high across all products and all geographic segments, and our business performance resulted in a new EPS record for the March quarter,” said Luca Maestri, Apple CFO . “Given our confidence in Apple’s future and the value we see in our stock, our board has approved an additional $110 billion in share repurchases. We are also increasing our quarterly dividend for the twelfth consecutive year.”