Apple’s iPhone and Services Sales Rebound, Ending Downward Revenue Trend

Strong iPhone and Services Performance Lifts Apple

After four straight quarters of declining revenue, Apple today reported its first period of growth since early 2022. For the first quarter of its 2024 financial year ending December 31st, Apple posted $119.6 billion in quarterly revenue – a 2% increase versus the same quarter last year.

CEO Tim Cook said Apple’s active installed base of devices has reached an all-time high, now surpassing 2.2 billion across all products and regions. The newly launched iPhone 15 lineup, introduced last September, fueled much of the growth.

“We’re reporting revenue growth fueled by iPhone sales, and an all-time revenue record for our Services division,” Cook said. Services revenue was lifted by all-time highs in advertising, cloud, payments, video, App Store and Apple Care services. Cook also highlighted Apple TV+ content receiving various nominations and awards.

Ahead of tomorrow’s launch of the much-anticipated Vision mixed reality headset, Cook called it a historic moment for innovation at Apple. He reaffirmed investments in new technologies like AI, with more details coming later this year.

While wearables, home products and accessories declined this quarter, Mac sales were up versus the previous year. A 25% drop in iPad revenue was attributed to an unusually strong 2023 holiday quarter with new Apple Silicon models. With no new 2023 iPad release, the decline was expected.

Cook noted milestones like Apple’s 100th retail store opening in the Asia Pacific region, plus progress on sustainability initiatives. “Apple has never shied away from big challenges,” he said. “We’re optimistic about the future, confident in the long term, and as excited as we’ve ever been to deliver for our users.”