Apple right now introduced monetary outcomes for the primary fiscal quarter of 2025, which corresponds to the fourth calendar quarter of 2024.
For the quarter, Apple posted income of $124.3 billion and web quarterly revenue of $36.3 billion, or $2.40 per diluted share, in comparison with income of $119.6 billion and web quarterly revenue of $33.9 billion, or $2.18 per diluted share, within the year-ago quarter.
Apple set all-time data through the quarter for complete income, earnings per share, and companies income. Whole income was up 4 % year-over-year, whereas earnings per share rose by 10 %. Providers, Mac, and iPad income figures have been all up considerably year-over-year, whereas iPhone and Wearables noticed small declines.
Gross margin for the quarter was 46.9 %, in comparison with 45.9 % within the year-ago quarter. Apple additionally declared a quarterly dividend fee of $0.25 per share, payable on February 13 to shareholders of document as of February 10.
“At the moment Apple is reporting our greatest quarter ever, with income of $124.3 billion, up 4 % from a yr in the past,” stated Tim Prepare dinner, Apple’s CEO. “We have been thrilled to carry clients our best-ever lineup of services and products through the vacation season. Via the ability of Apple silicon, we’re unlocking new prospects for our customers with Apple Intelligence, which makes apps and experiences even higher and extra private. And we’re excited that Apple Intelligence will probably be accessible in much more languages this April.”
As has been the case for over 4 years now, Apple is as soon as once more not issuing steering for the present quarter ending in March.
Apple will present dwell streaming of its fiscal Q1 2025 monetary outcomes convention name at 2:00 pm Pacific, and MacRumors will replace this story with protection of the convention name highlights.
Convention name recap forward…
1:41 pm: “Our document income and powerful working margins drove EPS to a brand new all-time document with double-digit development and allowed us to return over $30 billion to shareholders,” stated Kevan Parekh, Apple’s CFO. “We’re additionally happy that our put in base of energetic units has reached a brand new all-time excessive throughout all merchandise and geographic segments.”
1:46 pm: Apple noticed energy in a number of product classes, with Providers income rising 13.9% year-over-year to $26.3 billion, whereas Mac income was up 15.5% to $9.0 billion and iPad income was up 15.2% to $8.1 billion. These features greater than offset dips of 0.8% in iPhone to $69.1 billion and 1.7% in Wearables, Dwelling and Equipment to $11.7 billion.
1:47 pm: After declining round 0.75% in common buying and selling right now forward of the earnings launch, Apple’s share worth has been bouncing round a bit following the discharge and is at the moment up round 0.25%.
1:56 pm: The maintain music is dwell forward of the quarterly earnings name with analysts at 5 p.m. EST / 2 p.m. PST. Anticipated on the decision is Apple CEO Tim Prepare dinner and, for the primary time, the corporate’s new CFO, Kevan Parekh, who took over from Luca Maestri on Jan. 1, 2025.
2:00 pm: The decision is starting with the usual earnings name disclosures about ahead trying statements from Suhasini Chandramouli, Apple’s Director of Investor Relations.
2:02 pm: Tim is on, taking a second to acknowledge the wildfires that impacted Los Angeles earlier this month. “LA is residence to a lot of our group members… we’re contributing to the reduction efforts and we’re persevering with to assist our groups and the area people.”
2:03 pm: Apple made $124.3 billion, up 4% from final yr and an all-time document. Earnings per share have been $2.40, up 10% from final yr, with all-time data throughout most international locations and areas, together with the Americas, Europe, Japan and the remainder of Asia-Pacific. It additionally set data in Latin America, the Center East and South Asia.
2:03 pm: Providers set an all-time income document and the corporate has made nearly $100 billion in income from companies within the final yr, and it has 2.35 billion energetic units.
2:05 pm: He is speaking up Apple Intelligence, noting the international locations that it is expanded to through the quarter since its launch in October, and upcoming language assist together with French, German, Italian, Portuguese, Spanish, Japanese, Korean and simplified Chinese language in addition to localized English to Singapore and India.
2:06 pm: He additionally cites privateness, claiming that “Apple intelligence is a breakthrough for privateness and AI with improvements like non-public cloud compute, which extends the business main safety and privateness of Apple units into the cloud.”
2:06 pm: Now we’re shifting to outcomes, beginning with iPhone, at $69.1 billion, reaching iPhone income data in “dozens of markets and areas.”
2:07 pm: Mac income was $9 billion, up 16% yr over yr, pushed by “important pleasure all over the world for our newest Mac lineup.”
2:07 pm: “It is a launch pad to allow customers to carry their finest concepts and boldest creations to life.”
2:08 pm: “Each product within the Mac lineup affords one thing extraordinary, whether or not that is the tremendous transportable MacBook Air, the powerhouse MacBook Professional, the world’s finest multi functional iMac, or the small marvel that’s the Mac Mini, which isn’t solely stunningly succesful, however as our first carbon impartial, Mac. All of that is enabled by the unparalleled energy of Apple silicon.”
2:08 pm: iPad income was $8.1 billion, up 15% from final yr.
2:08 pm: Wearables, Dwelling and Equipment income was $11.7 billion, thanks partially to the brand new Apple Watch Collection 10.
2:09 pm: “Well being Innovation has lengthy been a spotlight for us, and we’re dedicated to persevering with to advance this work, as a result of we all know how a lot it issues to our customers.” He mentions new listening to well being options on AirPods Professional and sleep apnea notifications.
2:10 pm: Apple Imaginative and prescient Professional got here to extra international locations as nicely! “Customers are having fun with unbelievable immersive leisure experiences and highly effective new options and enhancements to Mac digital show.”
2:10 pm: Providers set an all-time income document of $26.3 billion, rising 14% from final yr. All-time data within the Americas, Europe, Remainder of Asia-Pacific, and a December-quarter document in Japan.
2:11 pm: “5 years since launch Apple TV plus continues to be residence to unbelievable story telling that viewers love. There’s nothing fairly just like the anticipation that comes when a fan favourite returns, and we have been thrilled to debut the second season of Severance earlier this month.”
Components One starring Brad Pitt will debut on June 27.
2:11 pm: Apple TV+ productions have earned greater than 2,500 nominations and 538 wins.
2:11 pm: Customers may also share AirTag places with numerous airways to assist them reunite their baggage.
2:12 pm: New retail shops additionally opened in China, Spain and the US. A fifth retailer will probably be coming to the UAE later this yr, and the web retailer is coming to Saudi Arabia. Flagship shops will start opening in Saudi Arabia in 2026.
2:13 pm: “Every single day I get deeply shifting notes in regards to the some ways our expertise is enriching our customers lives. I lately obtained a be aware from a buyer who put his watch on his father’s wrist with when he feared one thing was unsuitable with him. The watch alerted them that the daddy was in afib, they usually have been in a position to get him to the hospital for probably lifesaving remedy.”
2:13 pm: “There are such a lot of touching notes across the profound affect of our new listening to well being function. Like a current consumer who advised me it had modified her life, permitting her to participate in conversations along with her kids and grandchildren.”
2:14 pm: Kevan Parekh is taking on the decision for the primary time.
2:15 pm: “We’re more than happy to report an all-time excessive for income. With December quarter income of $124.3 billion, up 4% yr over yr, achieved all time income data within the Americas, Europe, Japan and remainder of Asia Pacific and grew within the overwhelming majority of markets we observe. Merchandise income was $98 billion, up 2% yr over yr, pushed by development from iPad and Mac. Thanks for our unbelievable buyer satisfaction and powerful loyalty, our set up base of energetic units, reached an all time excessive throughout all merchandise and geographic segments, and is now over 2.35 billion energetic units.”
Merchandise gross margin was 39.3%, up 300 foundation factors sequentially. Providers margin was 75%, up 100 foundation factors thanks to combine. Gross margin was 46.9 general, up 70bp.
2:16 pm: This sturdy enterprise efficiency resulted in all time data for each web earnings at $36.3 billion and diluted earnings per share of $2.40, up 10% yr over yr.
2:17 pm: iPhone “grew within the majority of markets we observe and reached all time income data in a number of developed markets, together with Canada, Western Europe and Japan, and in rising markets like Latin America, the Center East and South Asia. The iPhone energetic set up base grew to an all time excessive in complete and in each geographic section. It additionally set an all time document for upgraders. In response to a current survey from Kantar through the December quarter, iPhone was a prime promoting mannequin within the US or in China in addition to the UK, France, Australia and Japan. The corporate continues to see excessive ranges of buyer satisfaction within the US at 96% as measured by 451 Analysis.”
2:18 pm: “Mac generated $9 billion in income, up 16% yr over yr. We noticed energy throughout our lineup, from the brand new Mac Mini to the newest MacBook Air and MacBook Professional fashions. This unbelievable efficiency was broad based mostly with double digit development in each geographic section. With our newest advances in Apple silicon and our quickest neural engine ever, clients are in a position to benefit from the total capabilities of AI and Mac. The Mac set up base reached an all time excessive, and we noticed a double digit development for each upgraders and clients new to the Mac. Moreover, buyer satisfaction within the US was lately measured at 94%.”
2:18 pm: “iPad income was $8.1 billion, up 15% yr over yr, pushed by the brand new iPad Mini and newest iPad Air, the iPad set up base reached one other all time excessive, and over half of the purchasers who bought an iPad through the quarter have been new to the product. Buyer satisfaction was at 96% within the US. Primarily based on the newest studies from 451 Analysis.”
2:19 pm: “Wearables, residence and equipment, income was $11.7 billion, down 2% yr over yr. Clients are excited in regards to the new AirPods 4 and the newest listening to well being options in AirPods Professional 2 and Watch, though we face a tough evaluate in opposition to Apple Watch Ultra2 launch final yr, the Apple Watch set up base reached a brand new all time excessive, with over half of consumers buying an Apple watch through the quarter being new to the product. Buyer satisfaction for Watch within the US was reported at 94%.”
2:20 pm: “Providers income reached an all time excessive of $26.3 billion, up 14% yr over yr. Providers continues to see sturdy momentum, and the expansion of our set up base of energetic units provides us nice alternatives for the longer term. We additionally see elevated buyer engagement with our companies choices, each transacting and paid accounts, reached new all time highs with paid accounts rising double digits yr over yr, paid subscriptions additionally grew double digits. Now we have nicely over a billion paid subscriptions throughout the Providers.”
2:21 pm: Apple has $141 billion in money and marketable securities after repaying $1 billion in maturing debt, and reducing industrial paper by $8 billion. $97 billion in complete debt, with web money of $45 billion after returning greater than $30 billion to shareholders by $3.9 billion in dividends and $23.3 billion in open market repurchases of 100 million Apple shares.
2:22 pm: FX headwinds anticipated to proceed to be a problem, an affect on income of two.5% yr over yr. March quarter income is anticipated to develop low to mid single digits yr over yr. Providers income anticipated to develop low single digits yr over yr, with a yr over yr development charge similar to the December quarter apart from FX challenges. Gross margin between 46.5 and 47.5, with working bills between $15.1 and $15.3 billion. Anticipated tax charge round 16%.
2:22 pm: Dividend of $0.25 per share payable on February 13.
2:24 pm: Q: In your ready remarks, you famous iPhone 16 fashions have been promoting higher in markets the place Apple Intelligence can be found. Are you able to assist us perceive that the way it’s impacting iPhone demand and what options are customers utilizing most frequently already?
A: We did see that the markets the place we had rolled out Apple intelligence that the yr over yr efficiency on the iPhone 16 household was stronger than these the place Apple intelligence was not accessible. By way of the options that persons are utilizing. They’re utilizing the entire ones that I would referenced in my opening feedback, from writing instruments to picture playground and Genmoji to visible intelligence and and extra.
We solely had two and a half weeks or so through the December quarter of the second launch of 18.2, after which solely had the UK and the opposite English language international locations for the 2 and a half weeks. And so we have, you already know, simply the early indications in the mean time.
2:27 pm: Q: On China, are you able to speak about headwinds that Apple faces, is it shifting preferecnes for Western expertise in favor of home ventors or is it operate of not having Apple Intelligence or substitute cycles?
A: In case you take a look at Better China income for the quarter, we have been down 11% yr over yr. Over half of the decline we skilled was pushed by a change in channel stock from the start to the tip of the quarter. On the Apple Intelligence aspect we have now not rolled out in China, we noticed higher outcomes we rolled out in than markets we had not. It is also probably the most aggressive market on the planet.
By way of the macro state of affairs, there was a fiscal stimulus or subsidy introduced lately in January that didn’t have an effect on the December quarter. There have been some provincial subsidies in December, however the nationwide program was introduced in January. It does cowl merchandise in classes we have now as much as a most worth level, we do see fiscal stimulus occuring and will probably be glad to speak about what that is trying like on the subsequent name.
2:28 pm: Q: Asking in regards to the DeekSeek state of affairs and the potential for prices to return down as Apple is an enormous beneficiary of decrease price compute.
A: Innovation that drives effectivity is an efficient factor basically and that is what you see in that mannequin. Our tight integration of silicon and software program will proceed to serve us very nicely. We do issues on the gadget and the non-public cloud which mimics, from an architectural perspective, what occurs on the gadget. From a CapEx perspective, we have all the time taken a really prudent and deliberate method and we proceed to leverage a hybrid mannequin.
2:29 pm: Q: With regard to the iPhone trajectory, you do not speak about new merchandise however do you’re feeling like there’s a whole lot of room for kind issue innovation sooner or later or is the present lineup displaying the place you are going? I am questioning if you happen to assume, by way of cellphone innovation, is there much more to return? Do you see the present market altering over the subsequent few years?
A: I feel there’s much more to return and I couldn’t really feel extra optimistic about our present product pipeline. There’s a whole lot of innovation left on the smartphone.
2:31 pm: Q: Was encouraging to listen to in regards to the document for iPhone upgraders. What do you attribute this to? Was Apple Intelligence taking part in a task within the markets you have launched in?
A: We have by no means seen the next stage of upgraders earlier than. The set up base hit a brand new all-time excessive as nicely and if you happen to take a look at the 16 in comparison with the 15, from launch which occurred in September, so throughout two quarters, the 16 outperformed the 15. I feel you possibly can conclude from that there are compelling causes to improve and within the markets the place we have launched Apple Intelligence, they outperformed markets the place we didn’t. A number of good coloration there.
2:32 pm: Q: On the iPad Professional M4, are you able to speak about that skinny kind issue for the iPad Professional? How did it assist iPad gross sales general and what did your advertising and marketing and shopper analysis let you know about how customers valued that skinny product kind issue?
A: It is a good query. iPad general grew 15% for the quarter and it was extra pushed by iPad Air and the entry-level iPad than the top-level iPad. General, we couldn’t be extra happy with the iPad class rising 15%, it is a terrific achievement for the quarter and possibly what’s most vital is that greater than half of the gross sales within the December quarter went to clients who have been new to the iPad. There’s nonetheless a superb quantity of consumers to draw there.
2:34 pm: Q: Seeing strong development traits in rising markets proper now, do you assume a few of these rising markets are beginning to get sufficiently big or rising quick sufficient to offset a few of the China headwinds you are going by?
A: Now we have nice ends in quite a lot of rising markets, I am significantly eager on India and we’re opening extra shops there after setting a December quarter document. The iPhone was the top-selling mannequin in India for the quarter and it is the second-largest smartphone market on the planet and third-largest for PCs and tablets. It is an enormous market and we have now very modest share in these markets and I feel there’s a number of upside there and that is simply one of many rising markets.
Rising markets we’re additionally seeing double digit development on the set up base in complete and for the iPhone.
2:35 pm: Q: On gross margins for March, you are guiding flat. Often you go up, is all of it FX?
A: We’re guiding to 46.5-47.5, we’re happy with that stage. There’s all the time places and takes, there will probably be FX headwinds that can have an effect on income and margin, nevertheless it’s offset by favorable prices and mixture of companies. Additionally, shifting from Q1 to Q2, we do have a lack of leverage. We be ok with the vary and it is a sturdy information for gross margin.
2:37 pm: Q: You talked about channel stock in China. Do you’re feeling like they’re elevated or out of vary in some other areas? Is that this a standard development into the March quarter?
A: On a worldwide foundation we’re very snug with channel stock place, in China, our channel stock diminished from the start to the tip of the quarter, and that was greater than half of the discount in reported outcomes. A part of the reason being that our gross sales have been a bit increased than we forecasted them to be in the direction of the tip of the quarter, so we ended somewhat leaner than we anticipated to.
2:38 pm: Q: Servies development has been sturdy however you have been navigating some fairly difficult regulatory burdens. Do you assume there is a prime line or margin headwind that your’e at the moment absorbing that might probably reverse in a extra balanced regulatory atmosphere?
A: We set an all-time document for Providers, up 14%, and we have now a broad companies portfolio and we have now nice momentum throughout the board. Now we have a billion paid subscriptions throughout the Providers platform.
2:40 pm: Q: You had a terrific quarter on Macs and iPads each. And I am simply curious by way of if you happen to can assist us take into consideration the sustainability of this double digit development that you simply noticed in each the product strains?
A: Mac was up 16% and iPad up 15%, sturdy uptake on new merchandise through the quarter. Launched M4-based MacBook Professional, iMac and Mac Mini through the quarter. Apple Silicon is designed for these workloads, however I do not need to undertaking on the class stage for the longer term, however we’re extremely happy with each the Mac and the iPad for the quarter.
2:41 pm: Q: Re India being a powerful and rising market, to ask about provide chain planning there, how a lot is a development expectation to that market vs diversification of the availability chain in that nation?
A: In case you take a look at the manufacturing we do there, we do manufacturing each for the home market and we export, so our enterprise wants sure economies of scale to have it make sense to fabricate in nation so it means we will want each a use for home market and export market.
2:45 pm: Q: How can we sq. iPhone momentum with the gross margin profile and Apple Intelligence as a momentum driver for iPhone? The place do you assume Providers margin might go from right here being at 75%?
A: Markets the place we rolled out Apple Intelligence carried out higher on a year-over-year foundation than markets the place we hadn’t. That provides us a constructive indicator that we have been happy with. The opposite factor I might say, if you happen to take a look at it from a launch to the tip of the Dec. quarter, that goes again to Sept., the 16 household is outperforming the 15 household. I feel these are two good knowledge factors. Our subsequent spherical of language rollouts will probably be in April, and so will probably be in our Q3 quarter.
Re gross margin, Providers margin is accretive to general firm margins, however we have now a big companies portfolio they usually have broad gross margins. Cost companies and iCloud are rising and once we add incremental customers they’re accretive to margins. What we anticipate on an organization stage is 46.5 to 47.5 and we expect that is a powerful information.
2:46 pm: Q: How a lot of the Mac development is regular substitute cycle versus Apple Silicon innovation?
A: I feel it is a mixture of those merchandise being so compelling that it is driving each upgrades on the double-digit stage and driving switchers at a double-digit stage. We’re seeing each come out and I feel it is simply due to compelling merchandise.
2:48 pm: Q: On product gross margin, how a lot room do you must enhance or with AI associated units is there extra room to develop or not?
A: We had fairly sturdy sequential enchancment, 300 foundation factors pushed by favorable combine and leverage in Q1, it is a launch quarter for a lot of merchandise and we get leverage from increased quantity. Our gross margin for merchandise is pushed by many elements, many merchandise have completely different marging profiles and blend makes a distinction. A lot of our combine throughout cellphone, we see folks gravitating in the direction of our Professional merchandise. Clients get into our greatest merchandise they usually have favorable gross margin. That development impacted us and we’re in a good commodity atmosphere from a price standpoint and benefited within the December quarter.
We’ll have a FX headwind heading into the March quarter and that is included within the steering we gave.
2:50 pm: Q: What would possibly speed up the tempo of Apple Intelligence adoption and is that this time to launch extra markets and languages or put in base, or is it about shifting advertising and marketing spend or R&D in the direction of AI? Will there be a tipping level the place adoption goes mainstream?
A: I feel it’ll go mainstream. I am getting suggestions from folks utilizing completely different options right now and that is, remember that on the iPhone aspect of our enterprise, you both need to have an iPhone 15 Professional or any iPhone 16 to make use of Apple Intelligence. As that base grows, utilization will proceed to develop. When you begin utilizing the options, you possibly can’t imagin not utilizing them anymore. I get 100s of emails a day and the summarization operate is so vital.
I feel it is a mixture of that and in April we roll out an entire collection of latest languages that you simply had talked about and the bottom grows additional.
2:51 pm: Q: Kevan, certainly one of Luca’s legacies was getting Apple to document margin ranges and sustaining constant pricing throughout the product vary. What observations are you able to share about worth sensitivity of customers and if having a wider vary of pricing would possibly unlock probably additional market share or enhance general product development?
A: I do not assume we’re gonna actually depart from what served us fairly nicely till now. We all the time consider taking a look at comparisons between quick time period and long run, I feel we have had a fairly disciplined pricing technique which was served us fairly nicely. And I feel we will form of stick to that.
2:51 pm: Q: How do you you see any potential tariff affect underneath Trump 2.0 after you probably did wonderful underneath Trump 1.0?
A: We’re monitoring the state of affairs and haven’t any greater than that.
2:52 pm: Q: There’s a whole lot of dialogue on agentic AI, using brokers. Upgraded Siri is coming in April, what do you consider that?
A: I feel the killer function is completely different for various folks and I feel for many, they will discover they are going to use lots of the options day by day. A kind of is Siri and that will probably be coming over the subsequent a number of months.
2:53 pm: Q: Serious about the typical helpful life of those units within the wild, the sturdy outcomes you noticed in 2021, how would possibly that assist alternative sooner or later?
A: It is dependent upon various kinds of customers. Some early adopters are fast to leap on the newest expertise and improve very incessantly after which you might have folks on the other aspect of that barbell. Most individuals are between these two factors. I do assume there have been a number of items offered through the Covid time period and it is an enormous alternative for us as an organization for greater than one of many product classes.
2:55 pm: The final analyst simply requested one query, and the decision ends some 5 minutes sooner than typical. And the decision is wrapped.
