Apple's profits rise during its fiscal first quarter despite lower than expected iPhone sales
After U.S. stock markets ceased their regular trading at 4 pm ET today, Apple released its fiscal Q1 2025 earnings report. The company failed to meet Wall Street estimates for fiscal Q1 iPhone sales which totaled $69.14 billion versus estimates of $71.03 billion. The results were relatively flat with the $69.70 billion in iPhone sales Apple recorded during the same quarter last year.
Apple reported iPad sales of $8.09 billion during the fiscal first quarter of 2025. The results not only beat the $7.32 billion in tablet revenue expected by Wall Street for the three-month period, iPad revenue also increased 15.2% year-over-year during the quarter. The always important Services unit, the second largest Apple business sector after the iPhone, also topped estimates of $26.09 billion with revenue of $26.34 billion. On an annual basis, this unit saw revenues rise by 14%.
"Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago. 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 makes apps and experiences even better and more personal. And we’re excited that Apple Intelligence will be available in even more languages this April."-Tim Cook, CEO, Apple
The Wearables, Home and Accessories unit, which includes the Apple Watch, AirPods, HomePods and other products suffered a small decline. Fiscal first quarter 2025 gross hit $11.75 billion versus the previous year's $11.95 billion.
Interestingly, Apple's sales rose in every geographic region except for Greater China where the iPhone is having a tough time. Sales in that market dropped 11% year-over-year to $18.51 billion from the previous year's $20.82 billion.
Net sales in other regions included:
- Americas-$52.65 billion in fiscal Q1 2025 vs $50.43 in fiscal Q1 2024.
- Europe-$33.86 billion in fiscal Q1 2025 vs $30.40 billion in fiscal Q1 2024.
- Japan-8.99 billion in fiscal Q1 2025 vs $7.77 billion in fiscal Q1 2024.
- Rest of Asia Pacific-$10.29 billion in fiscal Q1 2025 vs $10.16 billion in fiscal Q1 2024.
For the fiscal first quarter of 2025, Apple took in $124.30 billion which not only topped the Wall Street consensus of $124.12 billion, it also was up 4% on an annual basis. At $36.33 billion, net income topped last year's $33.92 billion, and basic earnings per share came to $2.41 per share, up 10% from the fiscal first quarter of 2024.
Wall Street was not impressed with the report. After declining $1.77 (.74%) during the regular trading session to close at $237.59, Apple's shares dropped a further $3.63 or 1.53% in after-hours trading. The stock is currently trading at $233.96. Compared to other times when Apple's stock moved sharply following a quarterly report, this is a pretty subdued response. The conference call could still change that depending on what Tim Cook and other Apple executives say about future quarters.
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