HIGHLIGHTS

Apple Achieves Record Revenue Numbers for a Quarter on Friday Morning

Quarterly Revenue Increased by 4% Year Over Year, Setting a New Record at $124.3 Billion

Growth Seen in Both Mac and iPad Due to New Models Featuring Apple’s Latest Silicon

On Friday morning, Apple, the most valued company globally, announced its highest ever quarterly revenue numbers, largely fueled by robust services sales and slight increases in both Mac and iPad sectors. However, the anticipated performance of AI-enhanced iPhones fell short of expectations. This starkly highlights the company’s ongoing challenges, especially in the Chinese market and amidst a general downturn in iPhone sales.

In its fiscal report for the first quarter of 2025, which concluded on December 28, 2024, Apple revealed a 4% year-over-year revenue increase, culminating in an impressive $124.3 billion. The diluted earnings per share reached $2.40, marking a 10% rise compared to the same period last year.

Tim Cook, Apple’s CEO, expressed his enthusiasm during the earnings call, stating, “Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago.” This encouraging growth can be primarily attributed to the high-margin services segment, which encompasses the App Store, Apple Music, and AppleCare. Impressively, this division racked up a record $26.3 billion in revenue during the quarter, signifying a substantial rise of 14% from the previous year.

In addition to the services sector, Apple also saw incremental growth in its Mac and iPad sales, credited to the launch of new models equipped with the latest Apple silicon technology. This innovation appears to resonate well with consumers, aiding in sustaining the company’s competitive edge.

However, despite the promising figures, the iPhone 16 series, which features Apple Intelligence, did not meet the anticipated targets. On a positive note, the iPhone remains the leading-selling smartphone model across several key markets including the United States, urban China, India, the UK, France, Australia, and Japan. Apple plans to expand the reach of Apple Intelligence into additional markets later in the year, demonstrating confidence in future growth.

Cook shared his excitement about the advancements Apple is making, stating, “We were thrilled to bring customers our best-ever lineup of products and services during the holiday season. Through the power of Apple silicon, we’re unlocking new possibilities for our users with Apple Intelligence, which enhances apps and user experiences to be more personalized. We are excited to announce that Apple Intelligence will be expanding to more languages by April.”

With this expansion, Apple Intelligence will become available in several new languages including French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese. Furthermore, localized English versions tailored for markets in Singapore and India will also be introduced.

During the call, Cook underscored Apple’s commitment to the Indian market, revealing plans for four new retail stores in the country. “India set a December-quarter record, and we’re focused on expanding our presence there with four new stores,” he stated. Currently, Apple operates two physical stores in the country, located in Delhi and Mumbai, significantly enhancing its offline strategy within this growing market.

Cook highlighted the encouraging sales dynamics, noting, “The iPhone was the best-selling model in India for the quarter, which is particularly noteworthy given that India stands as the second-largest smartphone market in the world, as well as the third-largest for PCs and tablets. There is enormous potential in this market, and we believe our relatively modest share indicates substantial upside opportunity, particularly as we continue to explore emerging markets.”