Apple Inc (NASDAQ: AAPL), the world’s largest company, reported a 36% fall in net income to US$14.7 billion (A$22.4 billion) in the three months ended 28 September 2024.
Financial statements showed this included a $14.8 billion income tax provision, significantly higher than the $4 billion provision a year earlier, because of the reversal of the European General Court’s State Aid decision.
Apple said in a statement quarterly diluted earnings per share (EPS) fell by 50% to $0.97 in the fourth quarter of its 2023/24 financial year but, if the impact of the one-time tax charge is excluded, they rose 12% to $1.64.
Across the full financial year net sales rose 2% to $391 billion but net income fell 3% to $93.7 billion and diluted EPS was flat at $6.08 as the income tax provision increased 78% to $29.8 billion.
Directors declared a cash dividend on common stock of $0.25 per share, payable on 14 November 14 to shareholders on record at the close of business on 11 November.
Apple CEO Tim Cook said the statement that September quarter revenue (net sales) was a record $94.9 billion, up 6% from a year earlier.
He said the company announced new products such as the iPhone 16, Apple Watch Series 10, AirPods 4, and features for Apple Intelligence and hearing health and sleep apnea detection during the quarter.
Apple Chief Financial Officer Luca Maestri said record business performance in the September quarter drove nearly $27 billion in operating cash flow, allowing the company to return over $29 billion to shareholders.
“We are very pleased that our active installed base of devices reached a new all-time high across all products and all geographic segments, thanks to our high levels of customer satisfaction and loyalty,” Maestri said in the statement.
Apple shares closed at $225.91, down US$4.19 (1.82%), before declining further in after-hours trading to $222 at 8.50am AEDT. It is capitalised at $3.4 trillion at the closing price.
Shares in the maker of iPhones, iPads, Macs and other products and services have risen 15% this year and hit a record high of $237.49 last week on news of a recovery in iPhone sales in China before easing since then.