Apple records 6% increase in revenue with iPhone 16 sales playing key role

Apple reported the results of the third quarter of 2024 and exceeded the expectations of analysts on the main financial indicators. The company had revenue of $94.93 billion, beating estimates of $94.58 billion, and earnings per share of $1.64, also beating expectations of $1.60. However, the company's net profit fell due to a one-off tax charge in Europe, sending the share price down 2%. Interest in the new iPhone 16 series increased during the reporting period.

iPhone sales again played a key role in generating the company's total revenue, which rose 6% year-over-year to $46.22 billion, which was more than analysts' forecasts of $45.47 billion. This increase is due in part to increased demand for the new iPhone 16 series, which went on sale on September 20. Apple CEO Tim Cook said that sales of the iPhone 15 last quarter were better than those of the iPhone 14 during the same period last year, and the new iPhone 16 is in even greater demand. Overall, the iPhone remains Apple's flagship product, accounting for nearly 49% of the company's total revenue.

In addition, Cook highlighted the importance of Apple Intelligence's AI capabilities, which recently became available for Mac computers and iPhones as part of the iOS 18.1 update. According to him, users upgraded to the new version of iOS twice as fast as iOS 17.1 last year, and feedback from users and developers remains positive.

iPad sales posted the biggest increase in revenue from Apple's device sales, up nearly 8% to $6.95 billion. Apple released new iPad Pro and Air models in May after not introducing any new iPad models for all of 2023. Mac revenue rose 2% to $7.74 billion, driven largely by strong sales of the MacBook Air with new chips introduced in the spring.

Revenue in the Other Products category, which includes AirPods, HomePod speakers and Apple Watch smartwatches, came in at $9.04 billion, down 3% year over year and below analysts' expectations. Although the company introduced updated Apple Watch and AirPods models at the same time as the new iPhone series, interest in these products has been lower than expected.

Apple's revenue in mainland China, Taiwan and Hong Kong fell 1% to $15.03 billion, sparking investor concern. Growing competition from local manufacturers (such as Huawei) poses serious challenges for Apple in this strategically important region, where it is the third largest in terms of sales.

During the reporting quarter, Apple spent $29 billion on its own share buybacks and dividend payments as part of its strategy to maintain the stock price and strengthen shareholder interests. The company's financial reserves have reached 156.65 billion dollars, which enables it to maintain its independence in the face of increasing competition and difficult economic conditions.