Apple, Inc. (NASDAQ: AAPL) has unveiled its financial performance for the second quarter of fiscal 2024, ending on March 30, 2024, and the results are pretty worrisome for investors and the company itself. The Cupertino giant reported significant yearly declines in revenues across all major markets. Apple revenue in Q2 FY24 fell 4.3% YoY to $90.75 billion worldwide. Surprisingly, this second quarter’s revenue is a sharp 24.1% decline from the previous quarter’s impressive $119.58 billion in global revenue.
Despite trimming overall operating expenses by 5.5% YoY and 20.6% QoQ, Apple’s net profit declined 2.2% YoY to $23.64 billion during Q2 FY24. The primary reason for this decline is the slower growth in the company’s global revenue.
Now, let’s find out how much revenue Apple generated from iPhone sales and other products during the second quarter of fiscal 2024.
Apple Revenue From iPhone And Others
Although the iPhone continues to be the primary revenue source for Apple, its contribution to total revenue dropped from 54.1% in Q2 FY23 to 50.7% in Q2 FY24.
Apple’s revenue from iPhone declined 10.5% YoY and 34.1% QoQ in Q2 FY24, amounting to $45.96 billion worldwide. These double-digit declines in revenue can be attributed to the 9.6% YoY drop in global iPhone shipments.
Apple has been struggling with low demand for its Mac devices, as evident in its revenue figures. Throughout all four quarters of FY23, revenue declined YoY. Although the company reported a slight increase in Mac revenue in Q1 FY24, the growth was negligible.
In Q2 FY24, Apple revenue from Mac devices grew a modest 4% YoY to $7.45 billion worldwide. However, on a quarterly basis, the Mac revenue fell 4.2% QoQ.
The declining demand for tablets can be attributed to the increasing size of smartphones. Consequently, Apple’s revenue from iPads plummeted to an all-time low of $5.56 billion in the second quarter of fiscal 2024. During this period, iPad revenue declined 16.7% YoY and 20.9% QoQ.
As demand for iPhones, Macs, and iPads declined, so did sales of accessories and other wearable products from Apple. As a result, global revenue from the Wearables, Home, and Accessories segment also decreased to one of its lowest points, totalling $7.91 billion in Q2 FY24. This segment experienced a significant 9.6% YoY and a notable 33.8% QoQ decline in revenue.
On a brighter note, Apple’s services revenue soared to a new record high of $23.87 billion in the second quarter of fiscal 2024, an increase of 14.2% YoY and 3.2% QoQ. What’s more interesting is the share of services revenue to the company’s overall global revenue also hit an all-time high of 26.3% during the quarter.
“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter,” said Luca Maestri, Apple’s CFO.
Revenue Dropped Across All Major Markets
The Americas region has consistently shown the highest demand for Apple products compared to the rest of the world. This trend is evident in the region’s quarterly contribution to the company’s overall revenue.
- In Q2 FY24, Apple generated $37.27 billion in revenue from the Americas region, representing 41.1% of the total global revenue. However, the revenue from this region fell 1.4% YoY and a strong 26.1% QoQ during the second quarter.
- Apple’s revenue from Europe increased a negligible 0.7% YoY in Q2 FY 2024, amounting to $24.12 billion. However, compared to the previous quarter, there was a notable 20.6% drop in Q2 revenue.
- Apple reported significant declines of 12.7% YoY and 8.1% YoY in revenue from Japan and Greater China during the second quarter of fiscal 2024, respectively. Revenue from the rest of the APAC region also declined by double digits, with a 17.2% YoY and 33.8% QoQ drop.
These abrupt decreases raise questions about the factors contributing to such a significant revenue decline within a short timeframe. The second quarter of fiscal 2024 was disappointing for Apple. This is mainly due to the fact that most consumers did shopping in the holiday quarter spanning the months of October to December in 2023, which was Apple’s first quarter. Therefore, demand for all Apple products dropped worldwide. However, it is anticipated to rebound from late Q3. Additionally, Apple has been facing significant challenges in Greater China, primarily due to stiff competition from Chinese smartphone OEMs, particularly Huawei.