Cupertino, California - Apple Inc. has released its financial performance for the third fiscal quarter of 2024, traditionally aligning with the second calendar quarter. The tech giant reported a modest 5% increase in total revenue, reaching $85.78 billion, compared to the same period in the previous year. The net profit for the quarter was $21.45 billion, marking a 7.9% increase, and the diluted earnings per share were up by 11% to $1.40.

The iPhone business, a cornerstone of Apple's revenue, experienced a slight dip, with sales revenue of $39.296 billion, a minor 0.94% decrease year-over-year. Despite the lack of growth in iPhone sales domestically, Apple CEO Tim Cook stated that the iPhone remains the top-selling smartphone in major cities within China and that the existing user base has reached an all-time high. Additionally, the number of upgraders in Mainland China set a record for the June quarter.

In contrast to the iPhone's performance, the iPad category and services segment propelled Apple's overall revenue growth. The launch of the new iPad Pro in June stimulated a significant update cycle among consumers, resulting in a 23.7% year-over-year increase in iPad sales, which amounted to $7.162 billion. The services category also performed well, with a 14.1% increase in revenue to approximately $24.21 billion.

Breaking down the financials by product line:
- iPhone revenue was $39.296 billion, a slight 0.94% decrease from last year.
- Mac revenue reached $7.009 billion, a 2.4% increase.
- iPad revenue jumped to $7.162 billion, a 23.7% increase due to the new iPad Pro and iPad Air.
- Wearables, home products, and accessories saw a 2.3% decrease in revenue to $8.097 billion.
- Services revenue grew to $24.213 billion, a 14.1% increase.

Geographically, Apple's revenue varied across regions:
- The Americas saw a 6.4% increase in revenue to $37.678 billion.
- Europe experienced an 8.3% rise in revenue to $21.884 billion.
- Greater China's revenue fell by 6.5% to $14.728 billion.
- Japan's revenue increased by 5.7% to $5.097 billion.
- Other revenue grew by 13.4% to $6.390 billion.

Apple's CFO, Luca Maestri, provided guidance for the upcoming quarter, expecting overall revenue growth to mirror the previous quarter's 5% increase. He also predicted that the services business would continue to grow at a similar pace as seen in the last three quarters, around 14%. Apple anticipates a gross margin for the quarter ending in September to be between 45.5% and 46.5%.

Furthermore, Cook mentioned that while the impact of the upcoming Apple Intelligence service on sales will only be understood later in the fall, the company has been increasing expenditures in preparation for its launch.

This mixed performance in product categories highlights Apple's ability to diversify its revenue streams and underscores the importance of the services segment and the iPad lineup in driving growth.