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On January 30, 2025, Apple announced its earnings for the first quarter of the fiscal year. The company’s revenue and profits were higher than expected, but iPhone sales did not meet forecasts. Apple’s total revenue increased by 4% compared to the same period last year, reaching a record 124.3billion.Earningsalsohitanall−timehighof124.3billion.Earningsalsohitanall−timehighof36.33 billion, or 2.40pershare,beatinglastyear’s2.40pershare,beatinglastyear’s33.92 billion, or $2.28 per share. One of the key drivers of Apple’s growth was its services division, which includes products like the App Store, Apple Music, and iCloud. Revenue from services jumped 14% to 26.34billion.SalesofMaccomputersandiPadsalsogrewbymorethan1526.34billion.SalesofMaccomputersandiPadsalsogrewbymorethan158.99 billion and 8.09billion,respectively.However,iPhonesales,whichareApple’slargestsourceofincome,droppedslightlybynearly18.09billion,respectively.However,iPhonesales,whichareApple’slargestsourceofincome,droppedslightlybynearly169.14 billion. This was the first full quarter since the release of the iPhone 16 in September 2024. The decline in iPhone sales was partly due to challenges in China, where local competitors like Vivo and Huawei have been gaining market share. Apple’s sales in Greater China were the only region to decrease compared to the previous year. Apple CEO Tim Cook mentioned during the earnings call that iPhone 16 sales have been stronger in markets where Apple Intelligence, the company’s new AI-powered feature, is available. However, Apple Intelligence is not yet available in China due to regulatory issues. Despite the challenges, Cook noted that the iPhone 16 lineup has performed better than the iPhone 15 did after its launch. He also highlighted that a record number of customers upgraded their devices during the quarter. The number of active Apple devices worldwide reached an all-time high of 2.35 billion. Looking ahead, Apple expects its revenue for the second quarter to grow by a small percentage, in line with analysts’ predictions. The company also forecasts gross margins, a measure of profitability, to be between 46.5% and 47.5%, which is higher than what analysts had expected. Following the earnings report, Apple’s stock price rose by about 3% in after-hours trading on Thursday. Over the past year, Apple’s shares have increased by more than 27%, showing strong investor confidence in the company’s performance.
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