Apple (NASDAQ:AAPL) exceeded Q1 fiscal 2024 earnings estimates with $2.18 per share, a 4.31% beat, marking a 16% YoY rise. Net sales, at $119.58 billion, surpassed estimates by 1.66%, growing 2.1% YoY. Product sales, constituting 80.7% of total sales, reached $96.46 billion. While iPhone sales soared by 6% to $69.7 billion, iPad and Wearables, Home, and Accessories revenues struggled. Services revenues hit $23.12 billion, a YoY growth of 11.3%.

Geographically, America’s sales rose 2.3%, Europe generated $30.4 billion, up 9.8%, and the Asia Pacific region achieved $10.16 billion, a 6.6% increase. Japan’s sales surged by 15%. However, Greater China sales fell 13% to $20.82 billion.

Mac sales rose by 0.6% to $7.78 billion, driven by M3-powered MacBook Pro models. iPad sales declined 25.3% to $7.02 billion, while Wearables, Home, and Accessories sales decreased 11.3% to $11.95 billion. Apple Watch adoption continues to grow rapidly.

Gross margin expanded to 45.9%, a 290 bps YoY increase, with an operating margin growth of 300 bps to 33.8%. Cash & marketable securities reached $172.58 billion, and term debt was $106.04 billion. Apple returned nearly $27 billion through dividends and share repurchases.

Guidance for Q2 fiscal 2024 expects revenues and iPhone revenues similar to the year-ago quarter, factoring out the extra $5 billion due to pent-up demand. Unfavorable forex is anticipated to impact revenues negatively by 2%. The Services segment aims for a double-digit growth rate, mirroring the December-end quarter. Gross margin is projected at 46%, and operating expenses are estimated between $14.3 billion and $14.5 billion.

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