Apple is scheduled to announce its fourth-quarter earnings for fiscal year 2024 on October 31, coinciding with Halloween. This event is highly anticipated by investors and analysts, as it will provide key insights into the company’s financial performance amidst several new product launches. The conference call will begin at 5 PM Eastern Time, featuring CEO Tim Cook and CFO Luca Maestri, who will be making his final appearance in this role before stepping down at the end of 2024. Kevan Parekh is set to take over as CFO in 2025.
The fourth quarter, covering the period from July to September includes the launch of significant products such as the iPhone 16 series, USB-C AirPods Max, and the latest Apple Watches. However, these releases occurred late in the quarter, meaning their full financial impact is expected to be realized during the holiday season in the first quarter of the 2024-2025 fiscal year. In contrast, the earlier third-quarter releases, including updates to the iPad Pro and iPad Air, are anticipated to have a more pronounced effect on Q4 results.
In Q4 2023, Apple reported a revenue of $89.5 billion, a slight decline of 0.7% compared to the same quarter in 2022. This period included earnings per share of $1.46, with iPhone sales rising modestly by 2.8% to $43.8 billion. The Services segment, meanwhile, grew significantly by 16.3% to $22.3 billion. However, other areas such as iPad and Mac sales experienced declines, with iPad revenue dropping 10.2% to $6.4 billion and Mac sales decreasing by 33.8% year-on-year to $7.6 billion. The Wearables, Home, and Accessories category also saw a smaller decline, with revenue down 3.4% to $9.3 billion.
In contrast, the third quarter of 2024 showed stronger results, with total revenue reaching $85.78 billion and earnings per share at $1.40. Although iPhone revenue saw a slight decline of 0.9% to $39.3 billion, the iPad segment experienced a remarkable year-on-year revenue increase of 23.7%, totaling $55.6 billion. Additionally, the Mac and Services sectors reported growth, with Mac sales up 2.5% to $7.45 billion and Services expanding by 14.1% year-on-year to $23.9 billion. The only segment that did not show growth was Wearables, Home, and Accessories, which fell by 2.3% to $8.01 billion.
As Apple prepares for the earnings announcement, the tech industry is watching closely. The results will provide crucial insights into Apple’s current standing and future prospects in a competitive market. So far, Apple has reported $296.1 billion in gross sales and a gross margin of $136.8 billion for the first three quarters of the year. This upcoming report will indicate how the company has performed relative to its 2023 financials, which recorded gross sales of $383.3 billion and a gross margin of $169.1 billion. Despite a slight decline compared to 2022’s record results, Apple’s performance continues to be a vital indicator of its market position and future potential.
