Apple Inc. (AAPL, Financial) has released its financial results for the fourth quarter and full fiscal year of 2024. The company reported a total net revenue of $94.93 billion for the fourth quarter, reflecting a 6% increase year-over-year. However, net profit saw a significant decline of 36%, totaling $14.736 billion. Earnings per diluted share dropped by 34% to $0.97. Revenue from the Greater China region slightly decreased to $15.033 billion from $15.084 billion in the same period last year.
Post-announcement, Apple's management held a conference call featuring CEO Tim Cook, CFO Luca Maestri, and VP of Financial Planning and Analysis Kevan Parekh. It was revealed that Luca Maestri will step down as CFO on January 1, 2025, with Kevan Parekh set to take over the role.
During the call, analysts posed questions regarding new technologies and market strategies. Tim Cook discussed the positive reception of Apple Intelligence, which has seen a high adoption rate with iOS 18.1 updates doubling those of iOS 17.1 from the previous year. Upcoming enhancements and expansions for Apple Intelligence were highlighted, including broader rollout plans and new features slated for introduction by December.
Luca Maestri addressed questions on capital expenditure. He emphasized Apple's hybrid approach to data centers and indicated that the capital expenditure will continue to support innovations like Apple Intelligence. The company remains committed to investing in AI-related projects, suggesting no significant changes to the current annual capital expenditure of approximately $10 billion.
The demand for Apple's iPhone 16 series was also discussed, with Cook noting a balanced supply-demand situation compared to previous years. He highlighted Apple's efforts to maintain equilibrium and avoid prolonged wait times for customers. The introduction of Apple Intelligence is expected to contribute to user upgrades and interest in the iPhone 16 series.
Regarding gross margin forecasts, Maestri expressed optimism due to declining commodity prices and new product innovations. Apple's gross margin for fiscal 2024 is set to achieve record highs, with expectations of reaching 46% to 47% in the December fiscal quarter.
