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Apple’s fiscal third quarter of 2024 was stronger than analysts expected, but the growth was uneven. Revenue reached $85.78 billion, diluted earnings per share came to $1.40, Services grew 14%, and iPad revenue jumped nearly 24%. The main weakness was Greater China, where revenue fell 6.5%, while iPhone revenue was slightly lower year over year.
Before the August 1, 2024 release, investors were focused on one question: could Services and a new iPad product cycle offset soft iPhone demand, declining Wearables sales, and pressure in China? The answer was yes for the quarter’s headline numbers—but not because Apple had already monetized its artificial-intelligence strategy.
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What was Apple’s Q3 2024?
Apple’s fiscal Q3 2024 covered the period ended June 29, 2024. It was not the same as the calendar quarter from April through June, although the periods are similar. Apple reported the results on August 1, 2024.
That distinction matters when comparing Apple with companies that use calendar quarters. Apple’s next quarter—the period ending in September—was fiscal Q4 and included the initial launch period for the next iPhone generation.
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Apple’s official results release and consolidated financial statements provide the reported figures.
What Wall Street expected
Pre-release estimates varied by provider and collection date. The widely reported LSEG comparison put expected revenue at approximately $84.53 billion and expected diluted EPS at $1.35.
| Metric | Pre-release estimate | Actual | Result |
|---|---|---|---|
| Total revenue | $84.53 billion | $85.78 billion | Beat |
| Diluted EPS | $1.35 | $1.40 | Beat |
| iPhone revenue | About $39.9 billion | $39.30 billion | Below estimate; down 0.9% year over year |
| Mac revenue | About $7.0 billion | $7.01 billion | Approximately in line |
| iPad revenue | About $6.61 billion | $7.16 billion | Beat |
| Wearables, Home and Accessories | About $7.79 billion | $8.10 billion | Beat, despite a year-over-year decline |
| Services revenue | About $23.96 billion | $24.21 billion | Beat |
The estimates came from compiled analyst forecasts reported before the release. Consensus is not a universal number: it can differ by provider, collection date, rounding, and whether earnings estimates are GAAP or adjusted. For that reason, “Apple beat estimates” should always identify which estimate and metric are being discussed.
What Apple had already indicated
Apple had not returned to the detailed formal revenue guidance format it commonly used before the pandemic. Instead, CFO Luca Maestri gave directional commentary. Management indicated that:
- Total revenue should grow in the low-single-digit range year over year.
- Services growth should remain in the double digits.
- iPad revenue should return to double-digit growth, helped by newly launched models.
- Mac revenue should grow modestly.
- Gross margin should remain within the company’s stated range, with product mix and cost savings affecting the outcome.
Those comments were management’s outlook, not a binding forecast for every product category. They should be kept separate from Wall Street’s external estimates.
iPhone: stable enough for the headline result, but not a growth engine
iPhone revenue was $39.30 billion, down approximately 1% from the year-ago quarter. That was slightly below the roughly $39.9 billion analyst estimate, although the decline was modest.
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Investors were watching the iPhone 15 cycle, promotional activity, regional demand, and whether some customers were delaying purchases ahead of future AI-enabled iPhones. China was especially important because competitive pressure and weaker demand there could affect Apple’s largest product category.
Apple reports quarterly iPhone revenue, not quarterly iPhone unit sales in its financial statements. Therefore, revenue cannot be converted directly into a unit-demand conclusion. Pricing, model mix, geography, currency, and channel inventory can all affect revenue independently of units sold.
Services supplied the most dependable growth
Services revenue reached a record $24.21 billion, up approximately 14.1% year over year. It was the quarter’s most important recurring growth contributor and exceeded the reported consensus of about $23.96 billion.
The category includes businesses such as the App Store, advertising, cloud services, subscriptions, payment services, and warranties. Apple also said its ecosystem had more than 1 billion paid subscriptions.
Services growth supported Apple’s total revenue even while iPhone and Wearables revenue declined. However, Apple does not disclose every Services category separately in its quarterly financial statements, so the quarter does not prove that all individual services grew at the same rate.
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New iPads produced the clearest product-cycle rebound
iPad revenue rose to $7.16 billion, up approximately 23.7% year over year and comfortably above the roughly $6.61 billion estimate.
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The result benefited from the new iPad Pro and iPad Air models launched during the quarter, including the M4-equipped iPad Pro. It also benefited from a weak comparison with the prior year. That combination explains why iPad was the strongest hardware growth category.
The result was encouraging, but one quarter does not establish a permanent recovery in the tablet market. Future performance would depend on replacement demand, new users, product pricing, and the sustainability of the launch effect.
Mac growth was modest
Mac revenue was $7.01 billion, up approximately 2.5% year over year and broadly in line with expectations.
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The Mac business was recovering from a difficult comparison period, with Apple’s M-series transition and products such as the M3 MacBook Air supporting demand. The quarter suggested stabilization rather than a dramatic acceleration. Enterprise and professional demand, along with the broader personal-computer market, remained important variables.
Wearables remained a weak spot
Wearables, Home and Accessories revenue was $8.10 billion, down approximately 2.3% year over year. The category includes Apple Watch, AirPods, and other products.
Revenue was above the reported estimate of about $7.79 billion, but the category still lacked the growth profile of Services and iPad. A difficult comparison, an aging Apple Watch cycle, and the absence of a major new category catalyst were among the issues investors were monitoring.
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Greater China was the most important risk
Greater China revenue fell to $14.73 billion from $15.76 billion a year earlier, a decline of approximately 6.5%. Apple’s Greater China reporting segment includes mainland China, Hong Kong, and Taiwan—not mainland China alone.
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- Intensifying competition from local smartphone brands, including Huawei.
- A challenging smartphone market and broader economic pressure.
- Promotional pricing and discounting.
- Reports of restrictions affecting some workplaces and institutions.
- Questions about Apple’s competitive position and upgrade demand.
Apple also emphasized that its installed base in Greater China had reached a record. That is a long-term positive, but it does not cancel out the current-period revenue decline. A large installed base can coexist with lower upgrades, slower replacement cycles, weaker market share, or reduced spending in a particular quarter.
The SEC-filed Form 10-Q provides additional accounting and geographic detail.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Apple Intelligence was a future catalyst, not a Q3 revenue driver
Apple introduced Apple Intelligence at its June 2024 Worldwide Developers Conference. The announcement strengthened the long-term story around AI-enabled iPhones, iPads, and Macs, and raised the possibility of a future upgrade cycle.
But Apple Intelligence was not yet broadly available to customers during the June quarter. Its direct contribution to Q3 revenue was therefore unproven. The more relevant questions were:
- Which devices would support the features?
- When would the software become available?
- Would customers delay purchases while waiting for AI-capable products?
- Would the features create a meaningful iPhone 16 upgrade cycle?
- Could Apple eventually monetize the technology beyond its effect on hardware demand?
It would be inaccurate to say that Apple Intelligence caused Q3 sales growth. At the time of the report, it was principally a forward-looking product and ecosystem catalyst.
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What mattered for the September-quarter outlook
The June-quarter beat was less important to investors than whether Apple signaled acceleration in fiscal Q4. The September quarter was expected to include the initial launch period for the next iPhone generation and the beginning of the Apple Intelligence rollout.
Readers assessing the outlook should focus on:
- Total revenue: Whether growth was expected to accelerate beyond the low-single-digit pace.
- iPhone demand: Whether management saw stronger interest in the next generation and whether supply could meet it.
- AI timing: Which devices and regions would receive Apple Intelligence, and when.
- China: Whether the decline was stabilizing or becoming more severe.
- Services: Whether double-digit growth remained sustainable.
- Gross margin: Whether product mix, launch costs, and cost savings would support profitability.
Apple’s September quarter was fiscal Q4, not fiscal Q3. Confusing those periods can make an otherwise accurate earnings comparison misleading.
How to interpret the quarter as an investor
Apple delivered a stronger-than-expected quarter, but the quality of growth matters more than the headline beat alone.
- Positive: Revenue and EPS exceeded the reported LSEG consensus.
- Positive: Services reached a record and grew at a double-digit rate.
- Positive: iPad benefited from new products and a favorable comparison.
- Neutral: Mac growth was modest and approximately in line with expectations.
- Negative: iPhone revenue declined slightly rather than returning to clear growth.
- Negative: Greater China revenue declined materially.
- Negative: Wearables remained in decline.
- Uncertain: Apple Intelligence created a potential future catalyst, but there was no Q3 evidence that it had already increased sales.
EPS growth should also be interpreted alongside revenue, net income, operating performance, and capital returns. EPS can be affected by changes in share count as well as business growth.
Apple Q3 2024: key reported figures
| Metric | Q3 FY2024 | Year-over-year change |
|---|---|---|
| Total revenue | $85.777 billion | +5.0% |
| Net income | $21.448 billion | +7.9% |
| Diluted EPS | $1.40 | +11.1% |
| iPhone | $39.296 billion | -0.9% |
| Mac | $7.009 billion | +2.5% |
| iPad | $7.162 billion | +23.7% |
| Wearables, Home and Accessories | $8.097 billion | -2.3% |
| Services | $24.213 billion | +14.1% |
| Greater China | $14.728 billion | -6.5% |
Apple reported gross profit of $39.678 billion. Gross profit is a dollar amount; it should not be confused with gross margin, which is gross profit expressed as a percentage of revenue.
Bottom line
Apple’s fiscal Q3 2024 results beat broad revenue and EPS expectations, led by Services and a sharp iPad rebound. But the quarter was not a broad-based hardware recovery: iPhone revenue was slightly down, Wearables declined, and Greater China remained a significant weakness. Apple Intelligence improved the forward-looking story, while the more decisive test was whether it could support the September-quarter iPhone cycle and help Apple regain momentum in China and elsewhere.
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