Apple returned to revenue and profit growth in the June quarter, driven by upgraded iPad sales and a thriving services business that beat challenges in the Chinese market and declining iPhone sales.
The company’s net profit in the 2024 fiscal third quarter, which ended on June 29, jumped 7.8 per cent annually to more than $21.4 billion.
Revenue during the April-June period jumped 5 per cent to $85.8 billion, beating analysts’ average estimate of $84.5 billion.
It was the company's record for sales in the June quarter.
Apple’s net profit and revenue dropped 2.2 per cent and 4 per cent, respectively, in the fiscal second quarter.
Industry experts welcomed the company’s growth in earnings and said Apple has been more comfortable than ever over the past year as the world's largest company by market cap.
"It's an incredibly solid quarter for Apple, which validates the company's turnaround towards becoming the leading player in the AI-to-consumer space,” Thomas Monteiro, senior analyst at Investing.com, told The National.
After the earnings announcement, Apple stock rose 0.64 per cent to $219.75 a share in after-hours trading on Thursday.
It closed 1.68 per cent down at $218.36, giving the company a market value of $3.29 trillion.
Its stock has surged almost 18 per cent since the start of the year.
Cautious guidance for September quarter
Apple predicts about the same total revenue growth in the September quarter as the last quarter, which was 5 per cent, chief financial officer Luca Maestri said on an analysts’ call.
Dwindling iPhone sales
The company's premier product, the iPhone, faced stiff competition in China from local brands such as Huawei and Xiaomi, leading to another quarter of declining sales.
They dropped almost 1 per cent to nearly $39.3 billion in the quarter from the year before, but they exceeded analysts’ estimates of $38.8 billion.
They accounted for nearly 46 per cent of the company's total revenue in the last quarter.
The company’s total revenue from its services division grew more than 14 per cent annually to almost $24.2 billion, while revenue from wearables, and home and accessories products dropped 2.3 per cent annually to more than $8 billion.
It was an all-time revenue record in the company’s services division.
Revenue from iPads and computers increased more than 12.1 per cent to pass $14.1 billion.
Apple launched new iPads during the quarter for the first time since 2022, prompting a surge in upgrades.
Falling share in China
Apple slipped out of the top five smartphone retailers in China during the last quarter, as competition from local brands increased, according to a Canalys report.
Its market share in China dropped to 14 per cent in the June quarter, from 16 per cent in the prior year period when it was the third-largest smartphone seller in China.
The company’s overall sales, which include revenues from products and services, in the Greater China market (China, Hong Kong and Taiwan) dropped 6.5 per cent to $14.7 billion in the last quarter.
Falling sales in China have proved Apple chief executive Tim Cook wrong when he said in May: “I feel good about China. I think more about long term than to the next week or so.”
Americas region led Apple’s sales. It accounted for nearly 44 per cent of the company's total third-quarter revenue, with more than $37.7 billion.
It was followed by Europe, which added $21.9 billion – up 8.3 per cent annually – to the company’s revenue.
Japan and the rest of the Asia Pacific market added more than $11.5 billion to Apple’s third-quarter sales, an annual jump of almost 10 per cent.
Apple said its board of directors had declared a cash dividend, payable on August 15, of $0.25 for each share of the company’s common stock.
Why is Apple excited about artificial intelligence?
In the last quarter, Apple announced various updates to its software platforms, including Apple Intelligence – a personal intelligence system that puts generative AI models at the core of iPhone, iPad and Mac.
“We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work,” Mr Cook said.
The new technology will be integrated into the company’s latest operating systems for iPhones, iPads and Macs that are expected to be launched tp the public next month.
It will harness the power of in-house silicon chips to understand and create language and images, in addition to taking action across apps.
Apple numbers should look “even better once the AI features hit the market in the quarters ahead”, Mr Monteiro said.
"On the margins side, the company also looks poised to keep improving in the fourth quarter and beyond, particularly due to its push on the chips side.”
Zayed Sustainability Prize
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The five pillars of Islam
Mohammed bin Zayed Majlis
How England have scored their set-piece goals in Russia
Three Penalties
v Panama, Group Stage (Harry Kane)
v Panama, Group Stage (Kane)
v Colombia, Last 16 (Kane)
Four Corners
v Tunisia, Group Stage (Kane, via John Stones header, from Ashley Young corner)
v Tunisia, Group Stage (Kane, via Harry Maguire header, from Kieran Trippier corner)
v Panama, Group Stage (Stones, header, from Trippier corner)
v Sweden, Quarter-Final (Maguire, header, from Young corner)
One Free-Kick
v Panama, Group Stage (Stones, via Jordan Henderson, Kane header, and Raheem Sterling, from Tripper free-kick)
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The five pillars of Islam
The five pillars of Islam
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
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%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
Mohammed bin Zayed Majlis
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
The years Ramadan fell in May
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
KILLING OF QASSEM SULEIMANI
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MATCH INFO
Uefa Champions League, semi-final result:
Liverpool 4-0 Barcelona
Liverpool win 4-3 on aggregate
Champions Legaue final: June 1, Madrid
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
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UAE currency: the story behind the money in your pockets
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Zayed Sustainability Prize
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
Four-day collections of TOH
Day Indian Rs (Dh)
Thursday 500.75 million (25.23m)
Friday 280.25m (14.12m)
Saturday 220.75m (11.21m)
Sunday 170.25m (8.58m)
Total 1.19bn (59.15m)
(Figures in millions, approximate)
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
Mohammed bin Zayed Majlis
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Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Ad Astra
Director: James Gray
Stars: Brad Pitt, Tommy Lee Jones
Five out of five stars
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if you go
The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.
The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
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