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On August 1, Eastern Time, Apple released its third-quarter financial report for fiscal year 2024 ending June 29, 2024. The financial report showed that the company's total quarterly revenue was US$85.8 billion, a year-on-year increase of 5%, higher than analysts' previous expectations; quarterly diluted earnings per share were US$1.40, a year-on-year increase of 11%; net profit increased by 7.9% year-on-year to US$21.45 billion.

Among them, Apple's sales in Greater China fell 6.5% to US$14.72 billion, which was the only geographical region to decline year-on-year and the decline was greater than expected.

Apple's 2024 third quarter revenue by region year-on-year situation Apple official website document

“Today, Apple reported a new record for June quarter revenue of $85.8 billion, up 5 percent from the same period last year,” said Apple CEO Tim Cook. “During the quarter, we were excited to announce amazing updates to our software platform at Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful private generative AI models at the heart of iPhone, iPad, and Mac. We’re very much looking forward to sharing these tools with our users, and we will continue to invest heavily in innovation to enrich our customers’ lives, while leading with the values ​​that drive our work.”

In terms of business segments, iPad business performed the best, with revenue increasing 24% year-on-year to US$7.16 billion; iPhone and Mac revenues were US$39.3 billion (down 0.9% year-on-year) and US$7.01 billion (up 2.5% year-on-year); wearable devices, home, and peripheral revenues fell 2.3% to US$8.1 billion, all higher than expected; service revenue increased 14% year-on-year to US$24.213 billion, with strong growth momentum, also higher than expected.

Both Bank of America and Evercore ISI believe the September quarter, which includes a full week of results for the new iPhone, will see iPhone revenue resume year-over-year growth amid strong early signs of demand.

However, Apple's revenue in Greater China has been falling for several consecutive quarters. In the first and second quarters of 2024, revenue in Greater China fell by 13% and 8% year-on-year respectively.

On July 25, Canalys released a report showing that in the second quarter of this year, the smartphone market in mainland China further recovered after experiencing a turnaround in the previous quarter. Vivo, OPPO, Honor, Huawei, and Xiaomi, several major domestic brands, took the top market share. Although Apple made the largest price cut in history during the 6.18 shopping festival this year, its shipments still fell to sixth place, with a year-on-year market share decline of 6%.

According to Visible Alpha, although China's performance improved this quarter compared to 8% in the previous quarter, it still exceeded analysts' expectations of a 2.4% decline.

Apple attributed the decline in sales in China mainly to the strong dollar, saying that the underlying business is actually healthier than before. Luca Maestri said that if the impact of exchange rates is excluded, sales in China would only fall by less than 3%.

“We are very confident in China’s long-term prospects,” Cook said in a conference call with analysts.

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