Apple figures: Analyst estimates exceeded, but things are stuck in China

Apple presented its latest quarterly figures for the months of October, November and December 2024 on Friday night. Apple generated revenue of 124.3 billion US dollars, with a net profit of 36.3 billion. This corresponds to 2.40 dollars per diluted share. In the same period last year, Apple achieved revenue of 119.6 billion dollars, with a net profit of 33.9 billion or 2.18 dollars per diluted share. Operating profit in the Christmas quarter amounted to 42.8 billion dollars, while cash generated by operating activities reached 29.9 billion dollars. In terms of revenue and earnings per diluted share, Apple thus narrowly beat Wall Street analysts' estimates of 124.1 billion and 2.35 dollars per share. The iPhone remains the problem child in China, where the market shrank surprisingly significantly.

China down, Mac and iPad up

Total sales in the People's Republic fell by 11 percent to 18.5 billion dollars, whereas analysts had expected an increase to 21.6 billion dollars. The primary reason for this appears to be that users are increasingly turning to local smartphones from providers such as Huawei. Total iPhone sales – the 16 series was launched in September – fell by slightly less than 1 percent to 69.1 billion. The slow start of Apple Intelligence was obviously not helpful here. Despite the difficulties in China, Apple achieved new highs in total revenue, earnings per share and revenue in the service business. Sales of Mac (8.9 billion after 7.7 billion in the same quarter of the previous year) and iPad (8 billion instead of 7.0 billion) increased significantly, while the service business grew by 3 billion to 26.3 billion dollars. Business with Apple Watch, Home and accessories declined minimally – from 11.95 billion to 11.74 billion dollars.

Apple CEO Tim Cook emphasized the records: "Today we reported our best quarter ever, with revenue up 4 percent," he said. The aim is to open up the "new possibilities of Apple Intelligence" for customers "through the power of Apple Silicon". However, not all functions of the AI system are yet available, and the technology will not be available in the EU until April. The stock market reacted cautiously to Apple's results. Shortly after the figures were announced, the share price fell by 0.75 percent.

Positive development in AI markets

Apple also announced that it would once again pay a dividend. This is 25 US cents per share and will be paid from February 13. Kevan Parekh, Apple's new Chief Financial Officer, announced that a total of 30 billion US dollars had been returned to shareholders in the last quarter – via share buybacks and the aforementioned dividends. The installed base had once again reached a record level – in all product segments and geographical areas.

In terms of market distribution, Europe increased its turnover by 3 billion dollars, the USA by just under 2 billion and Japan by more than a billion. In a meeting with analysts following the announcement of the quarterly figures, Cook said that Apple Intelligence was seeing positive developments. In all markets where the AI system is available, business has increased compared to the previous year. "This gives us a positive indicator that we are satisfied with." The 16-series models are also said to have sold better overall than the 15-series iPhones. However, sales still shrank.

(bsc)