Apple Stock News: 2Q Financial Report
Apple announced financial results for the second fiscal quarter of 2024, which corresponds to the first calendar quarter of the year. For the quarter, Apple posted revenue of $90.8 billion and net quarterly profit of $23.6 billion, or $1.53 per diluted share, compared to revenue of $94.8 billion and net quarterly profit of $24.1 billion, or $1.52 per diluted share, in the year-ago quarter. Apple set an all-time quarterly record for Services revenue at $23.9 billion, but iPhone revenue dropped by over $5 billion compared to the year-ago quarter.
Gross margin for the quarter was 46.6 percent, compared to 44.3 percent in the year-ago quarter. Apple’s board of directors also authorized an additional $110 billion for share repurchases and declared an increased dividend payment of $0.25 per share, up from $0.24 per share. The dividend is payable May 16 to shareholders of record as of May 13.
Apple Hired Dozens of AI Experts
Apple has attracted numerous AI experts from Google, establishing a secretive lab in Zurich for their AI endeavors, according to a Financial Times report. Since hiring John Giannandrea as their AI head in 2018, Apple has recruited over 36 specialists from Google. While their primary AI team operates in California and Seattle, they’ve expanded to Zurich, likely influenced by acquisitions of local AI startups FaceShift and Fashwell. This lab, known as “Vision Lab,” focuses on advancing AI models, particularly in text and visual inputs. Notable ex-Googlers in Apple’s AI group include Giannandrea, Samy Bengio, and Ruoming Pang. Apple’s cautious AI rollout, attributed to concerns about incorrect responses from language models, may explain the delayed introduction of new AI features in iOS 18, though they’re rumored to be powered by on-device large language models.
No Apple Vision Pro 2 Before End of 2026
Apple’s second-generation Vision Pro headset isn’t slated for release until late 2026, according to Bloomberg’s Mark Gurman. Gurman indicates that despite efforts to lower costs and introduce a cheaper version sooner, Apple is still grappling with the challenge. Analyst Ming-Chi Kuo suggests significant changes may not happen until 2027, with potential improvements focusing on cost and production. The current model may see limited changes, possibly only reflected in price adjustments. Apple plans to expand Vision Pro availability to more countries, with China possibly next in line before WWDC in June.
