Apple releases third-quarter results: June quarter revenue record, services reach new all-time high

Apple today released earnings results Thursday for the third quarter of fiscal year 2024.

AAPL shares quickly jumped in after-hours trading following the release before fluctuating. This follows a more than 1.5 percent decline in share price during regular trading hours.

The company is propping up the quarterly revenue of $85.8 billion–up five percent from the same time last year. That tops predictions compiled by Visible Alpha of roughly $84 billion.

They also posted quarterly earnings per diluted share of $1.40–up 11 percent year-over-year, and topping estimates of $1.35.

One key division contributed to this growth with a new record–the services division brought in an all-time high revenue of $24.2 billion, again crushing expectations.

Ahead of back-to-school season, iPad and Mac sales also saw some improvements. The latest M2 iPad Air and M4 iPad Pro with long-awaited OLED displays contributed to a reported revenue of $7.16 billion, equivalent to 24 percent growth and living up to internal predictions of a double-digit growth. Macs, on the other hand, saw a 2.5 percent boost in revenue to just more than $7 billon.

Despite these achievements, some analysts are concerned as sales in China declined more than expected. Cook responded on the earnings call by highlighting a record iPhone install base in Greater China and a June quarter record for mainland China.  He called China the most competitive market in the world and called this quarter an improvement over the first half of the year.

In a press release, Apple CEO Tim Cook highlighted the announcements from WWDC24, mainly Apple Intelligence. On the earnings call, he expressed hope that the service package will contribute to a sales bump for the latest flagship iPhones this September.