Apple FY2024 Results: Services Growth Offsets iPhone Headwinds

Apple Closes Fiscal 2024 with Record Services Revenue

Apple reported Q4 FY2024 revenue of $94.9 billion, with full-year revenue reaching $391 billion. While iPhone sales showed modest growth, the services segment hit all-time highs, now representing nearly 25% of total revenue.

The Product Mix

Apple's revenue distribution tells an interesting story about the company's evolution:

• **iPhone**: $201.2 billion (51% of annual revenue)
• **Services**: $96.2 billion (25% of annual revenue)
• **Mac**: $30.0 billion
• **iPad**: $26.7 billion
• **Wearables, Home & Accessories**: $37.0 billion

The iPhone remains the anchor product, but its share of total revenue has declined from 60% just five years ago. Services—including App Store, Apple Music, iCloud, AppleCare, and advertising—continues its upward trajectory.

Margin Analysis

The shift toward services benefits Apple's bottom line significantly:

• **Products gross margin**: 36.3%
• **Services gross margin**: 74.0%
• **Blended gross margin**: 46.3%

As services grow as a percentage of revenue, Apple's overall profitability improves even if hardware unit sales remain flat.

Geographic Performance

Regional breakdown reveals varied performance:

• Americas: Strong holiday quarter performance
• Europe: Currency headwinds impacted reported results
• Greater China: Competitive pressure from Huawei and local brands
• Japan and Rest of Asia Pacific: Stable growth

China remains a focal point for investors. Apple faces both regulatory scrutiny and intensifying local competition, though the premium segment where Apple competes shows more resilience than the broader smartphone market.

Cash Flow and Capital Returns

Apple generated $118 billion in operating cash flow for the fiscal year. The company returned over $100 billion to shareholders through dividends and buybacks, continuing its aggressive capital return program.

With $162 billion in cash and marketable securities against $97 billion in debt, the balance sheet remains fortress-like.

Using Sankify for Apple Analysis

Visualizing Apple's income statement with a Sankey diagram immediately highlights the dual-engine nature of the business. You can trace how product revenue and services revenue flow separately through their distinct cost structures before merging into operating income. The visual representation makes the margin differential between segments instantly apparent.