Apple FY2024 Q4 earnings are in.

[md5crypto]

https://www.apple.com/newsroom/2024/10/apple-reports-fourth-quarter-results/
Net income $14.7 billion on $94.9 billion sales. Net income down $8 billion YOY. I've never seen such a precipitous drop in profits from Apple. Are they spending like crazy on AI or something? They look like they have about $150 billion in cash and equivalents.

 

[Louis XVI]

https://www.apple.com/newsroom/2024/10/apple-reports-fourth-quarter-results/
Net income $14.7 billion on $94.9 billion sales. Net income down $8 billion YOY. I've never seen such a precipitous drop in profits from Apple. Are they spending like crazy on AI or something? They look like they have about $150 billion in cash and equivalents.

There was a one time $10.2 billion charge due to Apple losing a European tax case. That accounts for more than all of the loss in net income.

 

[macosandlinux]

Apple’s fiscal 2024 in charts

https://sixcolors.com/post/2024/11/apples-fiscal-2024-in-charts/

 

[LordDaMan]

Those are interesting graphs. Apple is a hardware company first and foremost and it look like their hardware, pretty much across the board, is sagging.

It look like services are starting to account for quite a bit of their business and keeps growing at a steady rate.

 

[ham bulu]

Those are interesting graphs. Apple is a hardware company first and foremost and it look like their hardware, pretty much across the board, is sagging.

It look like services are starting to account for quite a bit of their business and keeps growing at a steady rate.

Saturation. Apple hardware is pretty durable and performant and they failed to spark new sales through Apple Intelligence.

 

[wco81]

Q1 earnings are in. iPhone sales are down in China as many expected. But they've increased Services revenues and as a result have bigger profit margins.

The only Services price increase has been Apple TV +? Some people may continue to subscribe but they lag most of the other streamers in number of subscribers.

So are more people subscribing to Apple News, Arcade, Fitness? Doesn't seem that likely either. I can see people paying for more storage though. Cook announced that there are 2.35 billion active Apple devices now.

So the market seems to like, AAPL was up 3% in after-hours trading, despite the fact that several investment firms lowered the stock price target in the last couple of weeks, on the expectations of lower iPhone sales in China. I think they said sales were up in other regions but not by as much as forecasted.

Theory is that there are a lot of devices which haven't been upgraded in 3-4 years or more and these will eventually get upgraded as Apple Intelligence features become more useful. Or people will just upgrade once these devices hit 4-5 years in age.

In that case, Apple would no longer be a growth story so much as one maximizing margins across a huge installed base.

I thought they didn't award premiums or high PE ratios for non-growth stocks.

I can't find any reporting about how much cash on hand they now have. Apple didn't say in their PR either.

Dividend is going to be the same, so despite huge profits, they didn't increase the cash hoard or the dividend?

 

[cateye]

The only Services price increase has been Apple TV +? Some people may continue to subscribe but they lag most of the other streamers in number of subscribers.

So are more people subscribing to Apple News, Arcade, Fitness? Doesn't seem that likely either. I can see people paying for more storage though. Cook announced that there are 2.35 billion active Apple devices now.

I believe Apple groups pretty much everything that isn't a hardware product under "Services," including the 15/30% they take of AppStore purchases, IAP's and subscriptions, their cut of all ApplePay transactions (a fraction of a penny, but given hundreds of millions of transactions...), their growing in-house ad sales unit, and the billions they get from Google for the default search deal.

With that huge of an installed base, it stands to reason that at least some of those people are ponying up for various first-tier Apple services or bundles and that's going to equal a lot of money. But their passive income generation has got to be near legendary amounts of money at this point.