On January 30, Apple, the world’s most valuable company released its Q1 earnings outperforming the analyst expectations but sales fell short in China. Tim Cook, Apple CEO said, “Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up four percent from a year ago.” Mac, iPad, and service divisions majorly contributed to the company’s revenue growth. However, iPhone sales saw a dip in China, leading to a decline in year-over-year iPhone reviews.
Apple Intelligence doesn’t seem to have the expected effect as the sales remain stagnant. The same seems true for the new Camera Control button. Cook tried to downplay the idea that Apple Intelligence isn’t convincing people to upgrade and said, “During the December quarter, we saw that in markets where we had rolled out Apple intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence,” during an interview.
Apple Q1 Earnings Report
Apple’s holiday quarter is usually its strongest, and the three months ending December 28, 2024, were record-breaking. The company reached a new high with quarterly revenues of $124.3 billion, marking a 4% increase from last year. Net income rose to $36.3 billion, driven by record sales in key markets like the Americas, Europe, Japan, and the rest of Asia Pacific.
Earnings hit $36.33 billion, reaching a record $2.40 per share, up from $33.92 billion or $2.28 per share last year, surpassing expectations. By segment, Apple’s services revenue grew 14% to $26.34 billion. Mac and iPad sales also saw double-digit growth, rising over 15% to $8.99 billion and $8.09 billion, respectively. However, iPhone sales, Apple’s largest revenue source, dropped slightly by 1% to $69.14 billion, missing forecasts. This was the first full quarter since the iPhone 16 launched in September.
Apple’s iPhone Sale Dips
The Apple Q1 earnings report comes amid worries about declining sales in China, where local smartphone brands like Vivo and Huawei have gained market share. The China region was the only area where Apple saw a drop in sales compared to the previous year. Apple’s China sales also fell short of Wall Street expectations, reaching $18.5 billion, below the $20.9 billion forecast, marking an 11% drop from last year.
Apple Stock Update
Following the release of their earnings report, Apple’s stock further surged by over 3% in pre-market trading. The report revealed better-than-expected fiscal first-quarter results and optimistic revenue guidance for the second quarter, exceeding analysts’ predictions. The stock has risen by more than 27% in the past 12 months, up until Thursday’s close.
