Apple did not experience a repeat of the incredible run it had in its Q1 2024 earnings call when it generated $119.6 billion in revenue, but making $90.75 billion for the Q2 2024 period is still a darn good result when you factor in the wave of problems the company is experiencing in China, notably that iPhone sales slump. Despite these setbacks, the technology giant pocketed $23.6 billion, but the overall revenue was lower than the $94.8 billion figure it generated back in Q2 2023.
Apple’s Services division continues to grow and sets a new record, but iPhone revenue is down by $5 billion compared to Q2 2023
Typically, Apple’s second-quarter results are lower than what it makes in Q1, so looking at the latest numbers is nothing out of the ordinary. Regardless, the Cupertino firm beat Wall Street’s expectations of $86.15 billion in revenue, with a higher 46.6 percent gross margin for the quarter compared to 44.3 percent for the same period a year ago. iPhone revenue dropped 10 percent year-over-year, bringing in $45.96 billion, making it $5 billion less than what the division brought in Q2 2023.
Fortunately, the company’s other segments contributed immensely to that $90.75 billion revenue, with only the iPad and Wearables, Home & Accessories categories generating a lower amount compared to the same period last year. Apple’s tablet lineup brought in $5.56 billion, dropping 16.64 percent from $6.7 billion, as the iPad family has been unable to recover for several quarters now. Hopefully, introducing the rumored M4 versions during Apple’s May 7 event may turn the California-based titan’s fortunes around.
Mac revenue increased slightly from $7.2 billion to $7.45 billion, resulting in a nominal 3.9 percent increase. Services continued its winning streak again in Q2 2024, bringing in $23.87 billion in revenue, a new record, marking a 14.2 percent increase over the $20.9 billion revenue generated in Q2 2023. So far, Services is Apple’s most reliable segment, with analysts estimating that this category could be valued between $1.5 trillion and $1.6 trillion by the end of 2024.
The Q2 2024 earnings call is also the first time that we get a glimpse of how well the Apple Vision Pro was received in the market. Overall, the company posted stellar results, but it continues to remain dependent on the iPhone, which made up 50.6 percent of the entire revenue. Thankfully, other categories, such as Services, continue to deliver a sufficient amount of cushion, and it will likely numb any further financial beating that Apple bears due to dwindling iPhone demand in China.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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