Apple's Q1 2024 Earnings Call Takeaways

Apple today held its earnings call for the first fiscal quarter of 2024 (fourth calendar quarter of 2023), with Apple CEO Tim Cook and Apple CFO Luca Maestri sharing details on Apple's performance, recent product sales, services growth, and more.

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We've highlighted the most interesting takeaways from the earnings call.

EU App Ecosystem Changes

Maestri and Cook were asked about possible economic results from the changes that are being made to the App Store in the European Union. Maestri said that the EU represents just seven percent of Apple's global ‌App Store‌ revenue, while Cook said that impact it is impossible to determine right now because Apple finds it difficult to predict what customers and developers will choose.

"We've really focused on privacy, security and usability," Cook said. "And we've we've tried our best to get as close it in the past in terms of things that people love about our ecosystem, but we're going to fall short of providing the maximum amount that we could supply because we need to comply with the with the regulation."

Vision Pro

Apple CFO Luca Maestri said that several big companies are planning Vision Pro apps for customers and employees, including Walmart, Nike, Vanguard, Stryker, Bloomberg, and SAP. "From everyday productivity to collaborative product design to immersive training, we cannot wait to see the amazing things our enterprise customers will create in the months and years to come," said Maestri.

Cook said that Apple is "incredibly excited about the enterprise opportunities" with Vision Pro. Walmart, for, example, has a "very cool" merchandising app. There are companies making collaboration and design apps, there are field service applications, apps for control center/command center work, and more. "Really all over the map," said Cook.

"We couldn't be more excited about where things are right now," Cook said. "This has been multiple years of efforts from so many people across Apple and really took a whole of company effort to bring it this far."

AI

Tim Cook said that Apple is spending a "tremendous" amount of time and effort on artificial intelligence, and that details on its AI work will be shared later this year.

In terms of generative AI which I would guess is your focus, we have a lot of work going on internally, as I've alluded to before. Our MO, if you will, has always been to do work and then talk about work and not to get out in front of ourselves. And so we're going to hold that to this as well. but we've got some things that we're incredibly excited about, that we'll be talking about later this year.

Services

Apple's Services category set an all-time revenue record at $23.1 billion, up from $20.7 billion in the year-ago quarter. Paid subscriptions grew double digits year-over-year.

Apple set all-time revenue records in advertising cloud services, and payment services and video, along with December quarter records in the ‌App Store‌ and AppleCare.

Wearables

The Wearables, Home and Accessories category saw a drop in revenue, coming in at $12 billion, down from $13.4 billion last year.

Mac and iPad Sales

Mac sales were about flat at $7.8 billion (compared to $7.7 billion last year), but iPad sales were way down as Apple released no new models in 2023. ‌iPad‌ revenue was $7 billion, down from $9.4 billion last year.

Active Devices

Apple now has more than 2.2 billion active devices worldwide, which includes iPhones, iPads, and Macs.

Tags: AAPL, Earnings

Top Rated Comments

mtnDewFTW Avatar
4 weeks ago
Tim Cook commenting on development of gen AI is super rare. He would normally deflect, but this is a pretty clear indication things are in the works for WWDC, as it was rumored.
Score: 23 Votes (Like | Disagree)
chabig Avatar
4 weeks ago

And basic Bluetooth is still broken after several months of iOS 17.x…. Tim is useless.
Please elaborate. What problem do you have? How do you expect Tim to personally fix it for you?
Score: 18 Votes (Like | Disagree)
coachgq Avatar
4 weeks ago

My wife’s Lexus refuses to have a static free connection. Worked fine until iOS 15 I think. I would blame her phone, but it works perfectly with every other Bluetooth device including her earbuds.
Sounds like a Lexus issue to me.
Score: 14 Votes (Like | Disagree)
jayducharme Avatar
4 weeks ago

Walmart, for, example, has a "very cool" merchandising app.
Somehow I don't think the majority of Walmart shoppers are the ones who are going to drop $3500 on a Vision Pro.
Score: 13 Votes (Like | Disagree)
Mrkevinfinnerty Avatar
4 weeks ago

Not surprising. The EU wants to pretend it’s this massive market, but it’s tiny and not especially valuable for premium product makers.
Did you just make this up?

Probably the biggest market for luxury goods outside the US.
Score: 12 Votes (Like | Disagree)
Heindijs Avatar
4 weeks ago
EU users only contribute 7% of App store revenue? That seems like a really low amount. Does that line up with the amount of apple devices here or are other parts of the world just filled with excessive spenders?
Score: 10 Votes (Like | Disagree)

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