Apple‘s Services segment provided a lift to the tech giant’s overall June 2024 quarterly earnings, amid a slight drop-off in iPhone sales.
The company’s Services division, which includes Apple TV+, Apple Music, the App Store and other services, posted a new quarterly revenue record of $24.21 billion, an increase of 14.1%. Sales of the company’s iPhone smartphones came in at $39.3 billion, down about 1%, while iPad sales were up 24% to $7.16 billion thanks to next-generation models that shipped during the quarter.
Overall, for the three months ended June 29, the company reported revenue of $85.8 billion, up 5% and a record for a June quarter. Apple’s earnings per diluted share of $1.40, up 11%. That edged above Wall Street expectations, which had pegged sales of $84.53 billion and EPS of $1.35. For the September 2024 quarter, analysts are predicting a top-line take of $93.39 billion.
Apple CEO Tim Cook, in his prepared remarks, called out the company’s news announcements at the 2024 Worldwide Developers Conference, including Apple Intelligence, which “puts powerful, private generative AI models at the core of iPhone, iPad and Mac” and the enhancements in iOS 18 (due out in the fall).
On the earnings call, Cook touted new original content coming to Apple TV+, including new seasons of “The Morning Show” and “Severance.” He also boasted that Apple TV+ garnered 72 Emmys nominations this year — “our best-ever showing for the upcoming awards event,” Cook said. That includes 16 noms for “The Morning Show” Season 3, 11 for limited series “Palm Royale” and 10 for “Lessons in Chemistry.”
Apple’s sales for the June quarter were up in all geographical regions with the exception of Greater China, where revenue dropped 6.5% to $14.73 billion.
