Apple announces first quarter 2025 results, reports record sales despite iPhone struggles
On January 30, 2025, Apple announced its financial results for the first quarter of fiscal year 2025, which ended December 28, 2024. This shows that sluggish iPhone sales were offset by strong Mac sales and service revenue, resulting in the company's best quarterly performance ever. However, revenue growth from the previous quarter was the worst ever, and a slowdown in growth has also been noted.
Apple reports first quarter results - Apple
Apple points to 'fiscal stimulus' after steep China sales decline
https://www.cnbc.com/2025/01/30/apple-points-to-fiscal-stimulus-after-steep-china-sales-decline.html
Apple reports best-ever earnings even as iPhone revenue slips | The Verge
https://www.theverge.com/news/603661/apple-q1-2025-earnings-iphone-16-ai
In Apple's first-quarter earnings, the Mac leads the way in sales growth - Ars Technica
https://arstechnica.com/gadgets/2025/01/q1-earnings-apple-sees-a-sales-slip-in-china-worrying-investors/
Apple's sales for the quarter were $124.3 billion, up 4% from the same period last year, a record high, and its net income was $36.3 billion, up 7%.
'We're thrilled to deliver our best services and lineup ever to our customers this holiday season,' said Tim Cook, CEO. 'Through the power of Apple silicon, Apple Intelligence unlocks new possibilities for users, making apps and experiences better and more personal. We're also pleased that Apple Intelligence will be available in even more languages in April 2025.'
Despite CEO Cook's emphasis on the contribution of Apple Intelligence, iPhone sales were down slightly, with the company struggling in China in particular, where sales were down 11.1% year-on-year.
Prior to this announcement, a market research firm found that iPhone sales in China in the fourth quarter of 2024 fell 18.2% from the same period last year, causing iPhone market share to fall from first to third place on a quarterly basis, and from second to fourth place on a full-year basis.
Apple attributes the iPhone's poor performance in China to the fact that Apple Intelligence was not rolled out in the country, which affected sales in Chinese-speaking countries.
'We found that the year-over-year performance of the iPhone 16 family during the December quarter was stronger in markets where we deployed Apple Intelligence than in markets where we didn't,' Cook said in an interview with CNBC.
'What I want to say is that our 'channel inventory' declined from the beginning of the quarter to the end, which accounted for more than half of the decline in our reported results. Part of that was because our sales toward the end of the quarter were a little higher than expected,' Cook said, pointing out that a miscalculation in demand in China was a major factor in the decline. 'Channel inventory' refers to inventory held by companies such as carriers and retailers that sell Apple products.
As Cook said during the earnings call, Apple plans to roll out Apple Intelligence in additional languages, including Mandarin, in April 2025.
By Harald Groven
While the iPhone struggled and the wearables division also saw a slight decline, other areas were solid, with Mac and iPad sales up 15% each and services revenue up 14%. In particular, the improvement in Mac and iPad sales is believed to have been driven by the popularity of the new Mac models released in October 2024 and the iPad mini.
In addition, China has introduced subsidies to stimulate the domestic economy since 2024, and smartphones have been eligible for subsidies since January 2025. Apple products are expected to be eligible for subsidies, and CEO Cook commented, 'We expect fiscal stimulus measures to be implemented, and I look forward to talking about what they will look like on our next conference call.'
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