## Apple Witnesses Fall in iPhone and iPad Sales in Second Quarter of 2024
In Apple’s second quarter of 2024 earnings report, a drop in hardware sales, especially for the iPhone, was indicated. Yet, the tech heavyweight managed to surpass projections made by analysts for the quarter, largely attributed to a sharp increase in its services revenue.
10 Percent Plunge in iPhone Revenue
The data revealed that revenue from the iPhone slid from $51.33 billion in the same quarter last year to $45.96 billion, translating to a roughly 10 percent fall. This is the second successive quarter wherein iPhone profits have gone down. Nonetheless, the fall was not as steep as investors had originally foreseen before the earnings announcement.
Revenue Slips in Greater China for Apple
Revenue for Apple in the region it addresses as Greater China, which encompasses China, Taiwan, Singapore, and Hong Kong, dipped by 8 percent in totality. The company displayed marginally better performance in other regions. This decline coincides with China’s economic deceleration and the expanding market share of Huawei in China.
Minimal Increment in Mac Revenue
Globally, the income generated by Mac was $7.5 billion, a marginal step-up from $7.12 billion in the previous year. Revenue from other merchandise—including the Watch, AirPods, Apple TV 4K, HomePod, and the new Vision Pro headset—descended to $7.9 billion from $8.76 billion. This drop happened despite the introduction of Vision Pro during the quarter.
Decline in iPad Revenue
iPad profits also experienced a fall, dwindling to $5.6 billion from $6.67 billion. Apple plans to introduce new iPads in the following week, indicating that these upgrades are vital for achieving the corporate goals of the company.
Growth Continues in Services Revenue
The most promising category of revenue was services, which compasses everything from Apple Music to iCloud. Revenue in this sector rose to $23.9 billion, a leap from $20.91 billion in the second quarter of 2023.
Apple Authorizes $110 Billion for Stock Buybacks
Alongside the earnings report, Apple also disclosed an authorization of $110 billion for stock buybacks.
Summary
Even though there was a fall in hardware sales, especially for the iPhone and iPad, Apple surprisingly surpassed projected revenues in the second quarter of 2024. This was primarily due to the growth in services revenue. Additionally, the company also announced a significant authorization for stock buybacks.
Interview and Responses
Q: How much decline was witnessed in iPhone revenue in Q2 2024?
A: There was a roughly 10 percent fall in iPhone revenue, from $51.33 billion in Q2 2023 to $45.96 billion.
Q: What was Apple’s revenue performance in Greater China?
A: Greater China saw an 8 percent overall reduction in Apple’s revenue.
Q: What was Mac’s revenue performance?
A: Mac profits saw a slight incline, increasing to $7.5 billion from the previous year’s $7.12 billion.
Q: What was the performance of iPad revenue?
A: The revenue from the iPad fell from $6.67 billion to $5.6 billion.
Q: What was the most promising revenue stream for Apple?
A: Services were the most lucrative segment for Apple, which increased to $23.9 billion from $20.91 billion in Q2 2023.
Q: What was Apple’s announcement related to stock buybacks?
A: Apple disclosed an authorization of $110 billion for stock buybacks.
