Apple CEO Tim Cook expressed confidence in India’s role as a key strength for the company as it achieved its highest revenue in the December quarter, marked by robust double-digit growth in the country. While Greater China saw a 13% drop in net sales, Cook remains optimistic about China’s long-term prospects.
Globally, Apple reported a substantial increase in revenue and profit for the first quarter of fiscal year 2024, driven by strong sales of iPhones and services. The net profit surged to $33.9 billion, a 13.1% increase compared to the same period in the previous fiscal year, with revenue reaching $119.6 billion, up from $117.2 billion in the year-ago period.
Luca Maestri, Apple’s CFO, attributed the growth to factors like an additional week in the quarter a year ago and COVID-related factory shutdowns that impacted iPhone supply. Despite these challenges, iPhone and services revenue played a pivotal role in offsetting declines in other product categories.
iPhone sales, particularly from the latest lineup including the iPhone 15 series, significantly contributed to the revenue, rising 6% to $69.7 billion. Services revenue set a new record at $23.1 billion, marking an 11% year-over-year increase, with paid subscriptions growing double-digits annually. Apple’s overall installed base surpassed 2.2 billion active devices.
Revenue from Mac products grew marginally to $7.8 billion, showcasing a return to growth, while iPad sales faced a 25% decline and wearables, home, and accessories dipped by 11% compared to the previous fiscal year. Despite challenges, sales from Apple products amounted to $96.5 billion.
Looking ahead, Apple expects a similar double-digit growth rate for its services business in the March quarter, and for total company revenue and iPhone revenue to be comparable to the previous year, once the impact of channel inventory replenishment is factored out.
The company’s mixed reality headset Vision Pro, launched in June, is set to hit stores in the US on February 2, with plans for international expansion later in the year. Notably, Apple has refrained from providing revenue guidance since 2020 due to ongoing uncertainties.
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