Apple reported better-than-expected earnings in the third quarter of 2024, with revenue rising 4.9% to $85.78bn, beating analyst estimates of $84.53bn. The strong performance came despite a 0.9% decline in iPhone sales to $39.30bn, which was less than the 2.2% drop analysts had predicted.
The company's results were bolstered by anticipation of its new artificial intelligence features, announced at its annual developers conference in June. These include generative AI tools integrated into device operating systems and a partnership with OpenAI for its voice assistant Siri. The AI features will be available on iPhone 15 Pro models and later, with analysts expecting a boost in future sales.
In China, Apple's third-largest market, sales fell 6.5% to $14.73bn, a steeper decline than the 2.4% analysts had forecast. CEO Tim Cook attributed some of the drop to exchange rates, noting that on a constant currency basis, the decline was less than 3%. He expressed confidence in the long-term opportunity in China.
iPad sales surged 23.7% to $7.16bn, exceeding expectations, following the launch of a new AI-focused iPad Pro and a larger iPad Air in May. However, wearables sales fell 2.3% to $8.10bn. The company maintained its cash dividend at 25 cents per share.
