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What Apple reported for fiscal Q1 2025
The quarter covered the 14 weeks ended December 28, 2024, and Apple reported its results on January 30, 2025. It was Apple’s fiscal first quarter, not calendar Q4, although it included most of the holiday shopping season. Apple’s earnings release reported $124.3 billion in revenue, a quarterly record, and diluted earnings per share of $2.40, also a record.
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| Measure | Result | Context |
|---|---|---|
| Revenue | $124.3 billion | Up approximately 4% year over year; record quarterly revenue |
| Net income | $36.3 billion | Up approximately 7.1% year over year |
| Diluted EPS | $2.40 | Record quarterly earnings per share |
| Gross margin | Approximately 46.9% | Record, according to earnings coverage |
The 4% growth figure is consistent with revenue rising from approximately $119.6 billion to $124.3 billion. Some immediate coverage contains a conflicting 1.5% figure, but those reported totals imply growth of about 3.9%.
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It depends on which measure you consider. Financial coverage put analyst consensus at approximately $124.1 billion for total revenue and $2.35 for EPS, so Apple slightly exceeded those expectations. Consensus estimates are analysts’ forecasts, not company guidance. The same coverage put expected iPhone revenue at about $71.0 billion and Greater China revenue at $21.6 billion; both came in below those expectations. Services, at $26.34 billion, was above the approximately $26.1 billion consensus estimate. See the segment and consensus breakdown.
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This is why a modest companywide beat does not establish that Apple’s flagship product was accelerating. Services and other businesses helped the overall result even as iPhone revenue missed expectations.
Services led growth, while hardware results varied
Apple’s segment figures show a split quarter rather than a broad-based surge. Revenue is not the same as unit sales: Apple does not disclose complete iPhone unit sales, and segment growth alone cannot establish that device shipments rose by the same percentage.
| Business | Revenue | Year-over-year context |
|---|---|---|
| iPhone | Approximately $69.1 billion | Roughly flat; below analyst expectations |
| Mac | $8.99 billion | Up approximately 15% |
| iPad | $8.09 billion | Up approximately 15% |
| Wearables, Home and Accessories | Approximately $11.75 billion | Down approximately 2% |
| Services | $26.34 billion | Up approximately 14%; an all-time high |
Services was the clearest growth engine
Services revenue reached $26.34 billion, up about 14% year over year. The category includes the App Store, advertising, cloud services, AppleCare, licensing and subscriptions. It is broader than subscription revenue, and Apple’s public results do not break out every component. Services’ growth and margin profile helped support Apple’s profitability, but the company did not identify Services as the sole cause of its record gross margin.
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Mac and iPad added hardware growth
Mac and iPad revenue each rose approximately 15%. Recent product lineups, including Apple Silicon Macs and new iPad models, provide context for the results; the reported revenue figures do not by themselves show how much came from unit volume, pricing or product mix. Coverage associated iPad performance particularly with iPad Air and lower-priced models, not evidence of equal strength across every iPad model.
iPhone remained the largest business, but did not grow
At approximately $69.1 billion, iPhone was still Apple’s largest business by a wide margin. Revenue was roughly flat against approximately $69.7 billion a year earlier and below the roughly $71 billion analyst estimate. Tim Cook said the iPhone 16 family sold better than the iPhone 15 family. That management comment is not the same as a reported increase in total iPhone units: Apple does not provide full unit-sales figures, and total iPhone revenue remained approximately flat. Product mix or pricing may have helped sustain revenue, but that is an interpretation rather than a disclosed explanation.
Wearables, Home and Accessories declined
This category brought in approximately $11.75 billion, down about 2% year over year. Its decline is a reminder that a strong result in Services and selected hardware lines did not translate into growth across Apple’s full ecosystem.
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Why Greater China was the quarter’s biggest concern
Apple reported approximately $18.5 billion in Greater China revenue, down about 11% year over year and well below the approximately $21.6 billion analyst consensus cited in earnings coverage. Greater China is Apple’s reporting region, not a synonym for mainland China alone.
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The region matters because the decline was large enough to complicate the record-revenue headline. One quarter cannot establish whether Apple’s position is undergoing a lasting shift, but continued weakness would raise questions about its ability to preserve premium pricing and brand appeal against improving local alternatives.
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Apple Intelligence may shape upgrades, but its effect is unproven
Apple positioned Apple Intelligence as a feature of its newer devices, while its rollout varied by market, language and timing. Apple said more languages were planned for April 2025, as reported at the time. A planned expansion should not be read as a guarantee of availability everywhere: regional regulation and language support can affect rollout schedules.
AI features could encourage some customers to upgrade, or lead others to wait until features reach their language or market. But the quarter’s sales results do not prove that Apple Intelligence caused iPhone growth, delayed purchases, or drove China’s decline. Its effect needs to be assessed alongside the product cycle, regional demand and the timing of feature availability.
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What the quarter says about Apple’s business
Revenue rose about 4%, while net income increased approximately 7.1%, and reported gross margin reached roughly 46.9%. Revenue growth and profit growth measure different things: a business can earn more on each dollar of sales if its product mix, pricing, costs or other factors improve. Services’ expansion is relevant because the category generally has a higher margin profile than hardware, although Apple did not attribute the entire margin result to Services.
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The quarter shows Apple generating record companywide results without growth in its largest product line. That demonstrates the value of a broad business mix, especially Services and growing Mac and iPad revenue. It does not mean Apple is independent of iPhone demand: iPhone still accounted for far more revenue than any other individual category.
The 14-week quarter is also a comparison caveat. It included one more week than a standard 13-week quarter, so the reported year-over-year growth rate should not be treated as a like-for-like weekly sales comparison without adjusting for the extra week. The holiday period and product launch timing also matter when interpreting a single quarter.
What to watch in later results
- iPhone demand: whether revenue strengthens beyond the approximately flat result, and whether management offers further context on product-family performance.
- Greater China: whether revenue stabilizes or continues to fall amid local competition and varying feature availability.
- Services: whether growth near the quarter’s 14% rate continues; Apple does not report all underlying Services components separately.
- Apple Intelligence: how availability expands across languages and markets, and whether later results provide evidence of an upgrade effect.
- Mac, iPad and Wearables: whether Mac and iPad growth persists after recent product releases and whether the declining Wearables, Home and Accessories category recovers.
- Margins and outlook: whether profitability remains strong and how management’s forward revenue commentary compares with subsequent reported results.
These measures help distinguish durable growth from a result concentrated in Services, the holiday quarter and a favorable mix of products. Analyst forecasts can provide a comparison point, but they remain estimates rather than promises of future performance.
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