Apple posts record $85.8B Q3 revenue despite iPhone sales dip
Apple has announced a record-breaking third-quarter revenue of $85.8 billion for the 2024 fiscal year, marking a 5% increase from the previous year. This financial milestone was achieved despite a decrease in iPhone sales and revenue from China, the world's largest smartphone market. The company's Chinese market revenue dropped by 6.3% to $14.7 billion, due to intense competition from Huawei and other smartphone manufacturers, ousting the iPhone maker from the top 5 ranks.
iPhone sales dip but remain popular in urban China
Apple's iPhone revenue experienced a minor dip from $39.67 billion in Q3 last year to $39.30 billion this year, its lowest share among the company's other products and services in nearly four years. Despite this, Apple CEO Tim Cook asserted during an investor call that iPhones continue to be bestsellers "in urban China." This indicates that while overall sales may have declined, the brand's popularity remains strong in key market areas.
Services and iPad sales boost Apple's revenue growth
Apple's overall revenue growth was largely fueled by significant increases in services and iPad sales. The company launched major new iPad updates in Q3 2024, which were warmly embraced by consumers, leading to a nearly 24% increase in iPad revenue to $7.16 billion. Revenue from services business, which includes Apple Store, Apple TV+ and Apple Music, saw a 14% rise to $24.2 billion, maintaining a positive trajectory for this sector.
Other product categories and future prospects
Other product categories such as "Wearables, Home, and Accessories" (including AirPods and the Apple Watch) saw a slight decrease of 2% to $8.1 billion during the quarter. However, the Mac experienced a 2% increase in sales to approximately $7 billion. Cook highlighted that a significant number of Apple Watch and iPad buyers this quarter were first-time owners, indicating potential for further market growth in these areas.
