Apple (AAPL) Q4 Earnings call transcript Oct 31, 2024

In Apple's recent Q4 Fiscal Year 2024 earnings call, the company's CEO, Tim Cook, and CFO, Luca Maestri, shared their insights on Apple's performance and future plans. The call highlighted key themes and trends, revealing a company in a strong position, with a focus on innovation and growth across its product portfolio.

Revenue Highlights and Product Performance

Apple reported a September quarter record revenue of $94.9 billion, a 6% increase from the previous year. The iPhone, in particular, showed strong growth, setting a new September quarter record, with growth in every geographic segment. The new iPhone 16 models, powered by A18 chips, have been well-received, with iPhone 16 Pro being the most advanced iPhone ever made. The Mac segment also saw growth, with the introduction of the new MacBook Air and the latest Mac mini, which features Apple's M4 chip. The iPad, with its recent launches like the iPad Mini and iPad Air, has become an essential device in homes, schools, and businesses of all sizes.

Services and Innovation

Services achieved an all-time revenue record of $25 billion, up 12% year-over-year. Apple TV+, with its popular content like "Wolfs," "Disclaimer," and "Slow Horses," has been a success, while Apple Pay celebrated its 10-year anniversary, marking a decade of seamless payment experiences. The introduction of Apple Intelligence, a new chapter in Apple's innovation, has been met with excitement. The company is working on expanding its reach, with plans to launch Apple Intelligence in the U.K., Australia, and Canada in December.

Challenges and Future Plans

The call also touched on challenges, including a $10.2 billion onetime income tax charge related to the impact of the European General Court state aid decision. However, the company remains optimistic, with a strong product pipeline and a focus on expanding its global presence. Luca Maestri, who will transition to a new role with Apple, expressed confidence in the company's future, highlighting the strong demand for Apple's products and services.

A Look Ahead

Apple's outlook for the December quarter is for low to mid-single-digit revenue growth, with services expected to grow double digits. The company is investing in AI-related CapEx, which could impact gross margins. The rollout of Apple Intelligence is expected to continue, with more features and languages being added over the next few quarters. The company is also focusing on expanding its presence in emerging markets, particularly in China, where it has seen strong growth.

Conclusion

Apple's Q4 Fiscal Year 2024 earnings call underscored the company's financial health and its commitment to innovation and growth. With a strong product portfolio and a focus on expanding its reach, Apple is well-positioned to continue its growth trajectory. The introduction of Apple Intelligence is a significant step, marking a new era for the company and opening up exciting opportunities for the future.