Neil Cybart Neil Cybart

Apple 3Q24 10-Q Takeaways, A Few Interesting Tidbits About Apple’s Share Buyback, Apple’s Free Cash Flow Margin

Today’s update will wrap up Neil’s 3Q24 Apple earnings review. We will examine Apple’s 3Q24 10-Q and the latest balance sheet and cash flow trends.

Here is how our review went:

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Neil Cybart Neil Cybart

Apple 3Q23 10-Q Takeaways, Apple's Share Buyback Update, Apple R&D Expense Growth Slows

Happy Wednesday. Today’s update will conclude our Apple 3Q23 earnings review.

In today’s update, we will go over Apple’s 3Q23 10-Q. We will then discuss Apple’s latest share buyback and R&D expense trends.

Let’s jump right in.


Apple 3Q23 10-Q Takeaways

Published at the end of FY1Q, 2Q, and 3Q, 10-Q filings provide additional commentary and disclosures regarding a company's business and financial results.

The following items from Apple's 3Q23 10-Q jumped out at me.

Product Details. Apple provided additional commentary behind sales trends for its major product categories.

  • iPhone. Net sales decreased in 3Q23 due “primarily to lower net sales from certain iPhone models, partially offset by higher net sales of iPhone 14 Pro models.” Based on that wording, higher iPhone ASP was registered in 3Q23 causing iPhone revenue growth to exceed unit sales growth. My model has iPhone ASP up 4% while unit sales were down 6%.

  • Services. Net sales increased in 3Q23 due “primarily to higher net sales from advertising, cloud services, and the App Store.” Last quarter, the ordering was cloud services, music and advertising. Advertising includes licensing revenue. App Store revenue was likely up a few percentage points year-over-year.

An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.

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Above Avalon Membership

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More information about Above Avalon membership, including the full list of benefits and privileges, is available here.

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