Apple earnings review: revenue hits record despite mixed product performance
Apple's Q4 2024 earnings showed record revenue of $124.3 billion, with strong Mac and services growth offsetting declines in iPhone and wearables segments.
Key earnings highlights
Apple's latest quarterly results paint a picture of resilient growth despite challenges in key product segments. The tech giant reported revenue of $124.3 billion, representing a 4% increase year-over-year (YoY).
The company's services division continued its strong performance, contributing significantly to overall growth. This segment includes offerings like Apple TV+, Apple Music, and the App Store.
Mac sales provided a bright spot in the hardware category, showing substantial growth. This success suggests Apple's computer division continues to benefit from ongoing workplace digitalisation.
However, iPhone revenue experienced a slight decline, raising questions about the flagship product's growth trajectory. This comes despite new features like Apple Intelligence and the Camera Control button.
Impact of AI integration
CEO Tim Cook addressed concerns about Apple Intelligence's market impact during the earnings call. He emphasised stronger iPhone 16 performance in markets where the feature was available.
The company's measured approach to AI rollout reflects its characteristic caution with new technologies. Apple plans to expand language support for its artificial intelligence (AI) features in April.
This strategic rollout aligns with Apple's traditional focus on perfecting features before widespread release. The company appears to be balancing innovation with reliability.
Market reaction suggests investors remain confident in Apple's AI strategy, despite more aggressive approaches from competitors.
Product segment performance
The wearables division, which includes Apple Watch and AirPods, saw a modest decline in revenue. This represents a rare setback for a traditionally strong growth segment.
Mac performance emerged as a standout success, contributing significantly to overall growth. Trading platform data shows increased institutional interest in Apple following these results.
The services segment maintained its impressive growth trajectory, highlighting Apple's successful transition beyond hardware. This diversification helps protect against hardware sales volatility.
iPad sales also showed improvement, suggesting continued demand for tablets in both consumer and enterprise markets.
Technical analysis and stock outlook
The stock faced selling pressure from late December but found crucial support around $220.00, matching its early November bottom. Share trading volumes increased notably during this period.
Recent price action shows a strong rebound, maintaining the broader uptrend. The stock now targets the previous record high of $260.00.
Technical indicators suggest continued bullish momentum, with strong support established at $235. Trading signals highlight increased buying pressure.
Any bearish scenario would require a decisive close below $235.00, potentially leading to a retest of January lows.
AAPL chart
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Remember that while Apple shows strong fundamentals, all trading carries risk. Demo account practice can help develop your trading strategy before committing real capital.
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