Apple has revealed its financial result saying revenue fell 4 percent to $90.753 billion for its second quarter ended March 30, 2024 from $94.836 billion.
Apple said it generated revenue of $45.963 billion from the sale of iPhones vs $51.334 billion. Analysts believe smartphone buyers have purchased several millions of AI-capable phones from rivals such as Samsung.
Research firm IDC said earlier Apple shipped 50.1 million iPhones for 17.3 percent share in January-March vs 55.4 million with 20.7 percent share. For comparison, Samsung, the leader in the smartphone market, has shipped 60.1 million smartphones in Q1.
Apple said it generated revenue of $7.451 billion from the sale of Mac computers vs $7.168 billion.
Another IDC research indicated that Apple shipped 4.8 million units of Mac PCs grabbing 8.1 percent share vs 4.2 million with 7.1 percent share.
Apple said it generated revenue of $5.559 billion from the sale of iPad vs $6.67 billion.
Apple’s revenue from the sale of Wearables, Home and Accessories reached $7.913 billion vs $8.757 billion.
Apple’s revenue from the sale of Services was $23.867 billion vs $20.907 billion.
Apple’s revenue from Americas was $37,273 million vs $37,784 million.
Apple’s revenue from Europe was $24,123 million vs $23,945 million.
Apple’s revenue from Greater China was $16,372 million vs $17,812 million.
Apple’s revenue from Japan was $6,262 million vs $7,176 million.
Apple’s revenue from Rest of Asia Pacific was $6,723 million vs $8,119 million.
Tim Cook, Apple’s CEO, said: “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month.”
For Apple’s current quarter, which ends in June, Tim Cook told Reuters the iPhone maker expects to grow low-single digits in overall revenue.
“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments,” said Luca Maestri, Apple’s CFO.
Apple expects current-quarter services and iPad revenue to grow by double digits, Luca Maestri told analysts on a conference call. The company expects gross margins of between 45.5 percent and 46.5 percent for the fiscal third quarter.
AI
Smartphone rivals such as Samsung Electronics have introduced competing devices aimed at hosting artificial-intelligence chatbots.
Samsung recently said AI features on the Galaxy S24 smartphone, such as Circle to Search, received high usage rates and contributed to sales growth.
“Samsung’s S24 launch reflects a pivotal moment in its AI and premium strategy,” Canalys Senior Analyst Sanyam Chaurasia said. “Samsung shipped 13.5 million units of Galaxy S24, achieving 35 percent growth vs its predecessor in Q1.”
The pull factor from Galaxy AI, the large scale of retail points elevating the customer experience, and a better time-to-market strategy, drove the strong performance of the Galaxy S24. It signals a broader shift in the smartphone industry towards AI-driven innovation.
In China, AI buzz and the foldable products allowed the Android smartphone vendors to further differentiate themselves from Apple and garnered increased interest from consumers, IDC said.
Apple’s services business, which contains its lucrative App Store and was one of the few areas of growth in the fiscal second quarter, is under pressure from a new law in Europe, Reuters news report said. In the United States, the Department of Justice in March accused Apple of monopolizing the smartphone market and driving up prices.
Baburajan Kizhakedath
