Apple (AAPL) Q1 earnings 2025

Apple Total revenue increased by 4% In its first fiscal quarterBut it missed on Wall Street’s expectations for iPhone sales and then sales in China fall 11.1%, the company reported on Thursday.

But shares rose approx. 3% in extended trade after the company gave a forecast for March quarter that suggested revenue growth.

Here’s how Apple did versus LSEG consensus estimates for the quarter that ended December 28.

• Earnings per Stock: $ 2.40 vs. $ 2.35 estimated
• Revenue: $ 124.30 billion against $ 124.12 billion estimated

• iPhone revenue: $ 69.14 billion against $ 71.03 billion estimated
• MAC revenue: 8.99 billion dollars against $ 7.96 billion estimated
• iPad revenue: 8.09 billion dollars against $ 7.32 billion estimated
• Other product revenue: $ 11.75 billion against $ 12.01 billion estimated
• Services Revenue: $ 26.34 billion against $ 26.09 billion estimated
• Gross margin: 46.9% against 46.5% estimated

Apple said the expected growth in March quarter of “low to middle single digits” on an annual basis. The company also said it expected to “make double digit” growth for its service division. Apple said it expected that the strong dollar would draw on Apple’s total sales of approx. 2.5%, and after explaining currency, the total growth rate would correspond to the 6%of the December quarter.

Wall Street Expected Guide to March Quarter of $ 1.66 in earnings per Share of $ 95.46 billion in revenue.

Apple’s profit engine, its services department, which includes subscriptions, warranties and license agreements, reported $ 23.12 billion in revenue, which is 14% higher than the same period last year. Apple CEO Tim Cook told analysts on a call on Thursday that the company had over 1 billion subscriptions, which includes both direct subscriptions for services such as Apple TV+ and iCloud, as well as subscriptions to third-party apps through the company’s App Store system.

Although Apple’s total sales rose over the quarter, the company’s closely monitored iPhone sales fell slightly on a year-over-year basis. The December quarter is the first full quarter of the iPhone 16 sales and Apple released its Apple Intelligence AI Suite to the devices during the quarter.

Apple’s iPhone Miss Versus LSEG estimates were the largest for the company in two years since its earnings report in first quarter questions in China.

In the first fiscal quarter, the company saw considerable weakness in Greater China, which includes the mainland, Hong Kong and Taiwan. Total sales of China fell 11.1% over the quarter to $ 18.51 billion. It is the biggest fall in China sales since the same quarter last year when they fell 12.9%.

Cook told CNBCS Steve Kovach that iPhone sales were stronger in countries where Apple Intelligence is available. Currently, the software is only available in a handful of English -speaking countries and it is not available in China or in Chinese.

“During the December quarter, we saw that in markets where we had rolled out Apple Intelligence that the performance year-old on the iPhone 16 family was stronger than the markets where we had not rolled out Apple Intelligence,” said Cook.

He added that the company was planning to release additional languages ​​in April, including a version of Apple Intelligence in Simplified Chinese.

Cook told CNBC that there were three factors in the company’s China performance. He said that half of the fall of 11.1% was due to a change in “Channel Inventory,” the fact that Apple Intelligence has not launched in the region and that China after quarter sales.

“If you look at the negative 11, half of the decline is due to a change in channel portfolio and therefore the operational performance is better,” Cook said.

The company reported $ 36.33 billion in net income over the course of the quarter, an increase of 7.1% from $ 33.92 billion in the same period last year.

In its first quarter, in its fiscal revenue report on Thursday, Apple reported a gross margin surplus that remained after accounting for the cost of goods sold at 46.9%. It is the highest on the record that surpasses the margin’s record of 46.6% during the period ending March 2024. Apple said it expected the gross margin to be between 46.5% and 47.5%.

Apple’s iPad and Mac sales showed strong growth during last year’s fighting sales in the Holiday Quarter. MAC revenue increased 15% to $ 8.98 billion and iPad turnover increased 15% to $ 8.08 billion. The company’s Mac Division published its best growth since the fourth fiscal quarter of 2022.

The company released new Macs during the quarter, including new iMac, Mac Mini and MacBook Pro Laptops in October. Apple also launched a new iPad Mini during the quarter. Cook attributed the growth of these segments to new products.

“It’s driven by the significant excitement of our latest Mac lineup,” Cook said.

Cook told analysts on an earnings call that the company had an active base of 2.35 billion active devices, up from the 2.2 billion figure that the company delivered a year ago.

The company’s category “Other products”, also called Wearables, which includes Apple Watch, AirPods, Beats and Vision Pro Sales, dropped 2% on a year-over-year basis to $ 11.75 billion in sales.

Apple said it would pay a dividend of 25 cents per year. Share and spent $ 30 billion on dividends and repurchases of shares during the first quarter.

CLOCK: Apple’s superficial problem is that there is not enough demand, says Jim Cramer