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Apple’s earnings report for the second quarter of the company’s 2024 fiscal year showed a slide in hardware sales, especially for the iPhone. Nonetheless, Apple beat analysts’ estimates for the quarter thanks to the company’s rapidly growing services revenue.
iPhone revenue dropped from $51.33 billion in the same quarter last year to $45.96 billion, a fall of about 10 percent. This was the second consecutive quarter with declining iPhone revenues. That said, investors feared a sharp drop before the earnings call.
Notably, Apple’s revenue in the region it dubs Greater China (which includes China, Taiwan, Singapore, and Hong Kong) fell 8 percent overall. The company fared a little better in other regions. China’s economy is slowing even as China-based Huawei is taking bigger slices of the pie in the region.
Globally, Mac revenue was $7.5 billion compared to last year’s $7.12 billion. Other products—which includes the Watch, AirPods, Apple TV 4K, HomePod and the new Vision Pro headset—was down to $7.9 billion from last year’s $8.76 billion, despite the fact this quarter included the launch of the Vision Pro.
iPad revenue was also down, at $5.6 billion from $6.67 billion. Apple is expected to launch new iPads next week, which suggests that those updates are needed to achieve the company’s business goals.
The rosiest revenue category was services, which includes everything from Apple Music to iCloud. Its revenue was $23.9 billion, up from Q2 2023’s $20.91 billion.
The company also announced authorization of $110 billion for share purchases.
