Apple reported a revenue growth of 4% in its first fiscal quarter, but missed Wall Street’s expectations for iPhone sales. Overall China sales declined 11.1% to $18.51 billion, the largest drop since last year. The company’s CEO, Tim Cook, attributed this decline to the absence of Apple Intelligence in China and a change in “channel inventory”. However, iPhone sales were stronger in countries where Apple Intelligence is available.
The company reported a gross margin of 46.9%, its highest on record, and expected growth in the March quarter of “low to mid single digits” on an annual basis. Services revenue grew 14% to $23.12 billion, with over 1 billion subscriptions. The company also announced plans to release additional languages for Apple Intelligence, including simplified Chinese.
Despite missing expectations, shares rose about 3% in extended trading. The company reported strong growth in iPad and Mac sales, with revenue increasing by 15%. Apple CEO Tim Cook attributed this growth to new products, including the new iMac, Mac Mini, and MacBook Pro laptops.
However, the company’s “other products” category, which includes Wearables, declined 2% on a year-over-year basis. The company also announced plans to pay a dividend of 25 cents per share and spent $30 billion on dividends and share repurchases during the first quarter.
Source: https://www.cnbc.com/2025/01/30/apple-aapl-q1-earnings-2025.html