This Thursday (01/02), Apple presented the financial report for the first fiscal quarter of 2024 (Q1 FY 2024), a period that corresponded to the fourth calendar quarter of 2023, covering the months of October to December. Apparently, the civilized people of Europe and Japan rushed to exchange their old iPhones with Lightning for the iPhone 15 and iPhone 15 Pro because of USB-C.
(October to December) Q1 FY 2024
(October to December) Difference Revenue US$ 117.154 billion US$ 119.575 billion + 2.067% Profit US$ 29.998 billion US$ 33.916 billion + 13.06% What Apple just released this Thursday (01/02) were the main data financial results in the three months ending December 30, 2023. Apple's first fiscal quarter (Q1) is normally its best in sales as we have the direct impact of new launches, normally available in mid-September, such as the iPhone 15 with USB- W. Based on the numbers released, we can see that Apple earned an average of 372.7 million dollars daily in the 13 weeks that make up the published period, earning in total something around the US$ 1.31 billion per day. Being optimistic, profit increased by 13% compared to the equivalent period in 2023, while revenue grew by 2% compared to that period last year. In one year, in other words: after four quarters of decline, Apple finally surprised shareholders with this increase in revenue. Let's see how much each major Apple product line grossed: APPLE REVENUE SUMMARY Period → Revenue
Q1 FY 2023 Revenue
Q1 FY 2024 difference
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Q1 FY 2023 iPhone $65.775 billion $69.702 billion + 5.97% Mac $7.735 billion $7.780 billion + 0.58% iPad $9.396 billion $7.023 billion – 25.26% wearables and accessories $ 13.482 billion US$ 11.953 billion – 11.34% subscriptions US$ 20.766 billion US$ 23.117 billion + 11.32% Revenue US$ 117.15 billion US$ 119.58 billion + 2.07% The collection of the smartphone line Apple had a small increase and this segment still accounted for 58.29% of global revenue. It is interesting to note that more than half of Apple's revenue comes from the iPhone and even a slight percentage increase of 6% (US$3.9 billion) compensates for the drop in all of the company's other operating segments. Can we give thanks to the replacement of the proprietary Lightning connector with USB-C starting with the iPhone 15? Possibly. With a potential market of 2.2 billion active iOS devices worldwide, the subscription segment remains Apple's second largest, which grew the most globally in the fourth calendar quarter of 2023 and corresponded to 19.33% of global revenue . The 11.3% increase (US$2.35 billion) in revenue from subscriptions to Cupertino Apple services helped the iPhone offset the elephant in the room, the iPad line, which had no new products presented in the fiscal year of 2023. Apple's tablet segment was the one with the biggest drop in the company's revenue in Q1 FY 2024, with a drop of a quarter ($2.37 billion) compared to the same period of the previous year. Speaking of falling…
Europe and Japan compensate for Apple's decline in China
APPLE REVENUES AROUND THE WORLD Period → Recipe
Q1 FY 2023 Revenue
Q1 FY 2024 difference
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Q1 FY 2023 participation
global
(Q1 FY 2024) Mainland China US$23.905 billion US$20.819 billion – 12.91% 17.41% Japan US$6.755 billion US$7.767 billion + 14.98% 6.5% remaining mainland US$9.535 billion US $10.162 billion + 6.587% 8.5% Asia (total): $27.543 billion $26.92 billion – 2.26% 32.41% Europe $27.681 billion $30.397 billion + 9.81% 25, 42% Americas US$ 49.278 billion US$ 50.43 billion + 2.34% 42.17% TOTAL: US$ 117.15 billion US$ 119.58 billion + 2.07% 100% As the Asian market is always detailed in Apple reports, Uncle Laguna always made a point of keeping the focus of the texts about the Cupertino Apple in that region. However, the situation in Q1 FY 2024 was a small decline in Asia. The big culprit? The Middle Country. Apple suffered a drop of almost 13% in China, a drop of US$3.09 billion there that was partially offset by the Japanese billion and the US$627 million more raised in the rest of Asia. In Europe, the continent that basically imposed USB-C on new iPhones, Apple from Cupertino raised almost 10% more than in Q1 FY 2023, totaling US$30.4 billion between October and December 2023 (Q1 FY 2024). This represented an absolute increase of US$2.72 billion in relation to Apple's European revenue in the fourth calendar quarter of 2022. Apple's largest market saw only a small percentage increase: compared to the first fiscal quarter of 2023, we see a higher revenue at US$1.15 billion in the Americas. This corresponded to a slight growth of 2.3%. As the American continent represented 42.17% of global revenue in the fourth calendar quarter of 2023 (US$50.43 billion), we can speculate that the Americas helped Europe and Japan save Apple's global profit in this period. As the US$2.89 trillion Apple no longer discloses unit sales data for its products, much less how much they are selling in each region of the planet, we can only say that Apple did very well in Europe and Japan. Coinciding with the launch of new iPhones that use USB-C instead of Lightning. And this is all just deducted from the collection. Sources: 9 to 5 Mac, Bloomberg and CNBC.
