Apple Reports Best Quarter Ever in 1Q 2025 Results: $36.3B Profit on $124.3B Revenue

[ikramerica]

View attachment 2477453

Yeah. iPod sales are gone! Also, the only reason Apple isn’t shrinking is due to services.

From a hardware and software pov, Apple is shrinking. Mac net sales adjusted for inflation are in the toilet.

 

[neuropsychguy]

Net quarterly profit margin was 29.2%. Those increasing services revenues help pad that margin, as do many of the upgrade margins. This is one reason Apple can keep device prices fairly stable over time (e.g., iPhone 16 Pro at the same $1000 as the iPhone X, not adjusting for inflation).

 

[guerro]

Check the after hours now. It's currently up 3.27%. Not that that matters much. What matters is long-term performance. APPL has been terrific with that.

Yeah, nice bounce. I guess it must have soaked in lol

 

[jtgil]

Where are all the professional economists saying iPhone demand was lower this year because stock waiting times weren’t long enough???? LMAO

 

[WarmWinterHat]

I'm so sad that Mac sales never grow. With all these magnificent apple silicon's, they should have skyrocketed.

And funny how they started to earn more on services even with all regulations war with EU.

People keep their Macs for twice as long as phones, if not more. I kept my 2012 Pro for 9 years, and the only reason I upgraded my M1 Air, bought in late 2020, is because I except to not really buy much of anything for the next four years. It was just fine and I can't tell any day-to-day difference with my M4 Pro.

Anyone with a M1 or greater really has no reason to upgrade, and Apple are still supporting late model Intel Macs.

Wow, the reports of disastrous iPad sales were so accurate. Just like last year’s iPhone and China story

iPhone sales in China are down 11%, according to today's results:

https://www.marketwatch.com/livecoverage/apple-earnings-stock-results-iphone-ai-guidance/card/apple-s-sales-in-greater-china-fell-below-wall-street-estimates-HS2rLoCQstO5OPc40Ih7

 

[Allen_Wentz]

Must be all those Vision Pro's they sold........

Apple sold hundreds of thousands of $3,500 AVPs that really only needed to serve as prototype tests. Yet some people need to diss AVP. Go figure.

 

[ikramerica]

Amazing what Apple’s massive $110 billion stock buyback program can do, huh?

https://www.reuters.com/technology/apple-unveils-record-110-billion-buyback-results-beat-low-expectations-2024-05-02/

If you are going to pay people with stock options you need to keep buying back shares to stop dilution.

 

[Allen_Wentz]

Sad that Apple now sells more watches than it does Macs

What is "sad?" Sales are a good thing: watches, Macs, iPhones, whatever.

 

[Allen_Wentz]

I'm so sad that Mac sales never grow. With all these magnificent apple silicon's, they should have skyrocketed.

And funny how they started to earn more on services even with all regulations war with EU.

Computers on the PC side are now generic and dirt cheap, low margin. Macs are the high end high margin and are doing well given that a new Mac typically lasts 5-7 years before upgrade. Apple remains 4th largest in personal computer sales IIRC. That is quite good IMO.

 

[whelmedjedi]

People don’t upgrade their Mac’s that often especially next to some of Apple other products

We are talking about huge amount of pc / new computer users. Current mac users are not the case.

 

[whelmedjedi]

People keep their Macs for twice as long as phones, if not more. I kept my 2012 Pro for 9 years, and the only reason I upgraded my M1 Air, bought in late 2020, is because I except to not really buy much of anything for the next four years. It was just fine and I can't tell any day-to-day difference with my M4 Pro.

Anyone with a M1 or greater really has no reason to upgrade, and Apple are still supporting late model Intel Macs.



iPhone sales in China are down 11%, according to today's results:

https://www.marketwatch.com/livecoverage/apple-earnings-stock-results-iphone-ai-guidance/card/apple-s-sales-in-greater-china-fell-below-wall-street-estimates-HS2rLoCQstO5OPc40Ih7

Im talking about new potential customers from pc side. Current mac users are not the case. I know we keep our macs like forever.

 

[anthogag]

Those are admirable numbers. 👏

 

[cutlub]

For everyone here at MacRumors who hates Apple, it appears the rest of the world does not.

Impressive, indeed.

 

[macfacts]

Services just keep getting bigger and bigger

Are you surprised? Or sad?

 

[basehead617]

Flattish so far after hours, which is nice as far as I'm concerned.

Up over 3% after hours.

 

[svish]

Very good quarter for Apple. iPhone continues to shine and Services continue to grow and is bringing in significant revenue. That will continue to grow.

 

[Cervisia]

"The (M4 Mac) silicon makes it perfect for running AI workloads, and so I assume that that's a very key compelling reason for people to upgrade," Cook said."

I'm sure that's why.

What he said is valid, he didn't mean "look ma', i made a genmoji" AI, but "I don't have to buy a 5000 dollar card to run a >32GB model" AI. A mac mini can do that for 2000, and that's for the whole computer.

 

[Cervisia]

I always wonder what percentage of that services pie-slice is Google’s default-search-engine tithe.

Around 27%, not that hard to calculate..

 

[Cervisia]

Best quarter ever and AAPL off a cliff. Seems about right. smh

Why are you surprised? Not posting the best ever quarter after inflation would be a sign of serious trouble.

 

[Cervisia]

Sad that Apple now sells more watches than it does Macs

Sad and a big missed opportunity of the past years.

That's actually not sad as it can help bring previously non-Apple or non-Mac customers into the ecosystem.

Watches won't bring in new costumers, just milk the existing ones even more. Not that it's bad. But competing more with pc manufacturers could have, with profits on other devices and increased service revenues compensating for it's cost many times over.

 

[Chazak]

https://www.cnbc.com/2025/01/30/apple-aapl-q1-earnings-2025.html

Here’s how Apple did versus LSEG consensus estimates for the quarter ending Dec. 28.

• Earnings per share: $2.40 vs. $2.35 estimated
• Revenue: $124.30 billion vs. $124.12 billion estimated
• iPhone revenue: $69.14 billion vs. $71.03 billion estimated
• Mac revenue: $8.99 billion vs. $7.96 billion estimated
• iPad revenue: $8.09 billion vs. $7.32 billion estimated
• Other Products revenue: $11.75 billion vs. $12.01 billion estimated
• Services revenue: $26.34 billion vs. $26.09 billion estimated
• Gross margin: 46.9% vs. 46.5% estimated

Although Apple’s overall sales rose during the quarter, the company’s closely watched iPhone sales actually declined slightly on a year-over-year basis. The December quarter is the first full quarter with iPhone 16 sales, and Apple released its Apple Intelligence AI suite for the devices during the quarter.

Apple’s iPhone miss versus LSEG estimates was the biggest for the company in two years, since its first-quarter earnings report in fiscal 2023. At the time, Apple said that its miss was because it was unable to make enough iPhone 14 models because of production issues in China.

The company saw significant weakness in Greater China, which includes the mainland, Hong Kong and Taiwan. Overall China sales declined 11.1% during the quarter to $18.51 billion. It’s the largest drop in China sales since the same quarter last year when they fell 12.9%.

Apple CEO Tim Cook told CNBC’s 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 isn’t accessible in China or in Chinese.

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

Cook told CNBC that there were three factors in the company’s China performance. He said that half of the 11.1% decline was due to a change in “channel inventory,” the fact that Apple Intelligence hasn’t launched in the region and that after the quarter ended, China issued a national subsidy that would stimulate some Apple product sales.

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

Apple executives usually give some color about how the current quarter is shaping up on a call with analysts. Wall Street is expecting guidance for the March quarter of $1.66 in earnings per share on $95.46 billion in revenue.

The company reported $36.33 billion in net income during the quarter, up 7.1% from $33.92 billion in the same period last year.

Apple’s iPad and Mac sales showed strong growth over last year’s struggling sales in the holiday quarter. Mac revenue rose 15% to $8.98 billion and iPad revenue grew 15% to $8.08 billion.

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

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

Apple’s profit engine, its Services division, which includes subscriptions, warranties and licensing deals, reported $23.12 billion in revenue, which is 14% higher than the same period last year. Cook said that the company had over 1 billion subscriptions, which includes both direct subscriptions for services like Apple TV+ and iCloud, as well as subscriptions to third-party apps through the company’s App Store system.

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

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

I can read a recap where it was published. What is the point of a cut and paste of someone's else's copyrighted material?

 

[Chazak]

Why are you surprised? Not posting the best ever quarter after inflation would be a sign of serious trouble.

The ever expanding universe theory has yet to be proven true.

Your statement is not true.

 

[ducknalddon]

For everyone here at MacRumors who hates Apple, it appears the rest of the world does not.

I wonder why those people are here, you would think they could find a better home.

 

[ThankYouRob]

iPod sales are looking pretty rough. 😌

 

[Realityck]

I can read a recap where it was published. What is the point of a cut and paste of someone's else's copyrighted material?

It was just additional details for quick review at the earliest possible time detailing about earnings, but since you mentioned it, I edited out everything except simple estimates vs actuals. Usually citations and source are much briefer.