Apple’s Q3 2024 Financial Results Highlight Mixed Growth Across Segments
Apple reported its third-quarter 2024 financial results, underscoring a mixed performance across product categories while continuing to beat Wall Street expectations on overall revenue. The company posted a 5 percent year over year increase in total revenue, signaling resilience in a challenging macro environment. However, iPhone revenue showed softness, edging down from 39.7 billion dollars in the prior year quarter to 39.3 billion dollars this year. The commentary from TechCrunch points to China as the primary driver of the iPhone decline, with iPhone sales in the region falling from 15.8 billion to 14.7 billion dollars in the same period. This regional softness contributed to the broader narrative of a multi-market shift in demand, even as Apple maintained a durable hardware ecosystem and a growing services and wearables lineup.
In contrast to the iPhone trend, Apple’s iPad category delivered a strong performance. Tablet revenue rose from 5.8 billion to 7.2 billion dollars year over year, a gain that Apple attributes to timely device refreshes and renewed interest at the start of the year. The uptick in iPad sales helped cushion declines in other hardware lines and reinforced the company’s strategy of balancing flagship devices with complementary products that expand the installed base and encourage ecosystem engagement.
Beyond devices, Apple’s services segment showed meaningful momentum. Revenue from services, including iCloud, Apple TV+, and Apple Music, increased to 24.2 billion dollars from 21.2 billion a year earlier. The growth underscores the ongoing importance of services as a high-margin pillar for the company and positions it as the second-largest profit center after the iPhone. This trajectory aligns with Apple’s long-planned shift toward subscription models and recurring revenue streams that enhance lifetime value per user.
On the innovation front, Apple confirmed continued investment in artificial intelligence through its Apple Intelligence initiative. Unveiled at WWDC in June, the AI strategy has been a focal point for the company as it seeks to translate breakthroughs in generative AI into practical capabilities across devices and services. CEO Tim Cook reiterated that substantial resources are being allocated to this area, reflecting Apple’s commitment to responsibly advancing AI that enhances user experiences while preserving privacy and security. The AI push is designed to complement Apple’s hardware and software ecosystems, enabling smarter features, more personalized services, and new categories of user value.
Looking ahead, investors and analysts will closely watch the interplay between hardware demand and AI-enabled services. Apple remains focused on sustaining growth through a diversified mix of products, services, and platforms that reinforce an integrated user experience. While regional trends like the China path may influence quarterly results, the company’s broader strategy emphasizes resilience through ecosystem leverage, continued product updates, and a scalable services engine that can adapt to evolving consumer preferences. Apple’s evolving AI agenda will be a key component of this strategy, with expected benefits in efficiency, personalization, and app ecosystem opportunities that extend well beyond the current quarter.
Overall, the quarter reflects Apple’s ability to navigate market headwinds while continuing to push forward with strategic investments. The balance between a softer iPhone performance in a major market and a robust growth story in tablets and services illustrates the company’s capacity to diversify revenue streams. As the business landscape evolves, Apple’s focus on AI, services, and innovative hardware will shape how the company sustains momentum and expands its global footprint across customers in North America and around the world.
Note: Financial results are presented in U.S. dollars and reflect the quarter ended in late June. The figures discussed provide a snapshot of the company’s performance and strategic priorities, including ongoing investments in artificial intelligence and the broader ambition to deliver improved user experiences across devices and services.