Apple immediately held an earnings name to report outcomes for the primary fiscal quarter of 2025 (fourth calendar quarter of 2024), with Apple CEO Tim Cook dinner and new Apple CFO Kevan Parekh offering perception into Apple’s efficiency, vacation quarter product gross sales, and extra.
We have highlighted essentially the most attention-grabbing takeaways from the Q1 2025 earnings name.
iPhone Gross sales and Apple Intelligence
Providers income was up, and there was a rise in Mac and iPad gross sales, however iPhone gross sales had been down. iPhone income got here in at $69.1 billion, down from $69.7 billion final yr. Apple Intelligence, which debuted in updates to iOS 18, doesn’t seem to have resulted in a serious improve cycle.
Cook dinner mentioned that the iPhone 16 fashions are, nonetheless, promoting higher in markets the place Apple Intelligence is accessible.
On Apple Intelligence adoption growing over time, Cook dinner mentioned that because the characteristic set is restricted to the iPhone 15 Professional fashions and the iPhone 16 fashions within the iPhone lineup, development will come as folks improve to newer units. Cook dinner additionally mentioned he expects to see some enchancment when Apple Intelligence turns into accessible in extra languages in April.
“And I believe I do know from my very own private expertise, when you begin utilizing the options you may’t think about not utilizing them anymore,” Cook dinner mentioned. “I do know I get tons of of emails a day, and the summarization perform is so essential.”
In a separate reply, Cook dinner mentioned that new Siri Apple Intelligence options can be coming “over the following a number of months.” Siri options had been anticipated in iOS 18.4, and it isn’t but clear if Apple’s plans have modified or the “subsequent a number of months” means April.
Greatest Quarter to Date
Apple CEO Tim Cook dinner mentioned that Q1 2025 was Apple’s finest quarter thus far with income of $124.3 billion, a 4 % enhance year-over-year.
Apple’s put in base of lively units reached a brand new all-time excessive throughout all merchandise and geographic segments, and Apple now has over 2.35 billion lively units worldwide. Gross sales in China had been down, nonetheless. China introduced in $18.5 billion, down from $20.8 billion final yr.
Providers Income
Providers income continues to see notable development, and the class introduced in $26.3 billion, up 14 % from $23 billion within the year-ago quarter.
All-time data had been set within the Americas, Europe, and the remainder of Asia-Pacific.
Paid subscriptions grew double digits, and Apple has greater than a billion subscriptions throughout its companies.
Mac Gross sales
Mac gross sales noticed important year-over-year development, with income at $9 billion, up from $7.8 billion final yr. Cook dinner mentioned Mac development was due to new M4 Mac fashions.
There was double digit development in each upgraders and folks new to the Mac.
iPad Gross sales
iPad gross sales grew 15 %, and Cook dinner mentioned it was largely pushed by the iPad Air and the low-cost iPad relatively than the iPad Professional. Over half of gross sales within the December quarter went to prospects who had been new to iPad.
DeepSeek
Cook dinner was requested about DeepSeek, and the angle that Apple will profit from decrease price on-device compute. Cook dinner mentioned that he believes that “innovation that drives effectivity is an efficient factor.”
Upcoming Merchandise
When Cook dinner was requested if there was “loads of room for kind issue innovation” for future iPhone fashions, Cook dinner mentioned that “there’s much more to return” and that “there’s loads of innovation left on the smartphone.”
Tariffs
On the potential for tariffs, Cook dinner mentioned that Apple is “monitoring the state of affairs” and would not have something extra to say.
Subsequent Quarter
Within the March quarter, Apple expects its general income to develop low to mid single digits with gross margin between 46.5 and 47.5 %.
