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Services buoy slumping iPhone sales in record-breaking holiday quarter earnings

Apple CEO Tim Cook [left], CFO Kevan Parekh [right]

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Apple has reported its financial results for the first quarter of 2025, with the holiday sales boosting revenue to a record $124.3 billion in the first results call with new CFO Kevan Parekh.

The first quarter of Apple's fiscal year is typically the biggest across all periods, following the usually intensive holiday shopping period and iPhone launches. The Q1 2025 results follow exactly the same pattern.

In the first quarter, Apple's revenue hit $124.3 billion, up from $119.58 billion reported one year ago in Q1 2024.

Bar chart showing quarterly revenue and gross margin from 2017 to 2025. Blue bars represent revenue, green bars represent gross margin. Revenue generally exceeds gross margin each quarter. AAPL quarterly revenue and gross margin

Broken down to units, iPhone revenue reached $69.1 billion, marginally down from $69.7 billion in Q1 2024. iPad revenue went up from $7.02 billion last year to $8.088 billion this time.

Mac revenue was largely static in Q1 2024 at $7.78 billion, while in Q1 2025, it rose to $8.987 billion. Wearables, Home, and Accessories managed to hit $11.747 billion, down from $11.95 billion in Q1 2024.

Services, the very reliable sector for the company, continued its positive growth streak. The $26.34 billion in Q1 2025 is up from $23.12 billion recorded in Q1 2024.

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Apple's board of directors declared a cash dividend of $0.25 per share of common stock. The Earnings Per Share is listed at $2.41.

During the period, Apple benefited from quite a few preceding product launches. The Q4 launches of the iPhone 16 range, AirPods Max with USB-C, the Apple Watch Series 10, and the black Apple Watch Ultra 2 all enjoyed a full quarter of holiday shopping sales.

Bar chart showing quarterly revenue from 2017 to 2025 for iPhone, iPad, Mac, Services, and Wearables, Home, and Accessories, highlighting highest revenue from iPhones. AAPL Units Revenue

As usual, the results are followed by the conference call with investors and analysts. Tim Cook will be in attendance as CEO, but so will Kevan Parekh, who is replacing Luca Maestri as CFO.

Maestri stepped down in January, allowing the VP of Financial Planning and Analysis to take over his role.

"Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago," said Tim Cook, Apple's CEO. "We were thrilled to bring customers our best-ever lineup of products and services during the holiday season.

"Our record revenue and strong operating margins drove EPS to a new all-time record with double-digit growth and allowed us to return over $30 billion to shareholders," said Kevan Parekh. "

On a regional basis, revenue from the Americas grew from $50.4 billion one year ago to $52.6 billion. Europe similarly saw an improvement from $30.4 billion to $33.9 billion.

Greater China revenue dipped from $20.8 billion to $18.513 billion, while Japan grew from $7.7 billion to $10.3 billion. Rest of Asia Pacific rounds out the list with $10.291 billion, a marginal improvement over Q1 2024's $10.162 billion.



30 Comments

JFC_PA 8 Years · 956 comments

lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

Good one. More in line with the text itself “marginal”. 

Buy a better headline writer. 

9 Likes · 6 Dislikes
sunman42 13 Years · 322 comments

JFC_PA said:
lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

Good one. More in line with the text itself “marginal”. 
Buy a better headline writer. 

Not clear where you got that number, that had neither a per cent symbol nor a unit after it. iPhone sales revenue declined $600M. While that's notch in terms of the overall sales picture for Apple, it's a fair chunk of change. I mean, would you turn $600M down if someone offered it to you?

7 Likes · 1 Dislike
9secondkox2 9 Years · 3241 comments

Dang. 

5 billion dollar increase overrall

and the Mac surged by a billion. Or around 11% growth, contributing to 20% of the overrall 5b gain over last year.  Nice. 

It’s looking like the m series is a hit for Mac’s, with this latest quarter unit numbers being anywhere from 35% - 46 %percent greater than the recent intel years. Wow. 

5 Likes · 0 Dislikes
tht 24 Years · 5745 comments

This is from the prepared statement during the conference call. 
"iPad revenue was $8.1 billion, up 15% year over year, driven by the new iPad Mini and latest iPad Air, the iPad install base reached another all time high, and over half of the customers who purchased an iPad during the quarter were new to the product. Customer satisfaction was at 96% in the US. Based on the latest reports from 451 Research."

Remember the rumors that sales of the M4 iPad Pro were not good, primarily sourced from Ross Young or Ming Chi Kuo who said the Tandem OLEDs weren’t driving sales, and manufacturing for this or that Tandem OLED part was being reduced or shut down?

So. Who is bullshitting who here?

It could be all sales of the iPad 10 and iPad mini? That would be really good news. There would be 2x to 3x more iPads in the market as iPP ASP is about 2x and 3x that of the iPad 10 and mini.

Likely, just status quo, with all products getting 10% to 20% more sales YoY in the holiday quarter?

2 Likes · 1 Dislike
foregoneconclusion 13 Years · 2910 comments

tht said:
Remember the rumors that sales of the M4 iPad Pro were not good, primarily sourced from Ross Young or Ming Chi Kuo who said the Tandem OLEDs weren’t driving sales, and manufacturing for this or that Tandem OLED part was being reduced or shut down?

So. Who is bullshitting who here?

They did say "driven by the new iPad Mini and latest iPad Air". I would interpret that to mean that those were the two biggest sellers.

4 Likes · 0 Dislikes