Apple announced record revenue for the final quarter of the calendar year. “Apple today reported its best quarter ever with revenue of $124.3 billion, up 4% from a year ago,” said CEO Tim Cook. Growth was observed across multiple segments, including Mac, iPad, and services. However, iPhone revenue saw a slight 1% decline, along with a drop in the “other products” category.
Financial Highlights for Q1 2025
For the first quarter of the 2025 fiscal year, ending December 30, Apple’s key financial indicators were as follows:
- Earnings per share: $2.40 (+10% year-on-year)
- Total revenue: $124.3 billion (+4%)
- iPhone revenue: $69.14 billion (previously $69.70 billion)
- Mac revenue: $8.99 billion (previously $7.78 billion)
- iPad revenue: $8.09 billion (previously $7.02 billion)
- Other products revenue (including Apple Watch and AirPods): $11.75 billion (previously $11.95 billion)
- Services revenue: $26.34 billion (previously $23.12 billion)
- Gross margin: 46.9% (a record high)
Despite the slight drop in iPhone revenue, Apple remains optimistic. Tim Cook emphasized that in markets where Apple Intelligence was introduced, the iPhone 16 lineup showed better annualized performance than in regions without it. Future reports will clarify whether Apple Intelligence is a true growth driver, as the feature is currently available only in select English-speaking countries.
Strong Performance in Services and Market Growth
Apple set a new record for gross margin at 46.9%, surpassing the previous high of 46.6% from March 2024. The company aims to maintain this margin between 46.5% and 47.5% in the current quarter, adds NIXSOLUTIONS.
According to CFO Kevan Parekh, Apple’s services sector remains a key contributor to profitability. Revenue in this segment grew 4% to $26.34 billion, accounting for about 21% of total revenue.
Despite some challenges, Apple continues to provide strong returns for investors. Over the past year, its stock has risen 31%, outpacing Nasdaq, with market capitalization reaching $3.6 trillion. We’ll keep you updated as Apple Intelligence expands to more markets and its impact on sales becomes clearer.