Services buoy slumping iPhone sales in record-breaking holiday quarter earnings

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in AAPL Investors edited January 30

Apple has reported its financial results for the first quarter of 2025, with the holiday sales boosting revenue to a record $124.3 billion in the first results call with new CFO Kevan Parekh.

Two smiling men in front of a large, circular building with a green courtyard and rainbow structure in the background.
Apple CEO Tim Cook [left], CFO Kevan Parekh [right]



The first quarter of Apple's fiscal year is typically the biggest across all periods, following the usually intensive holiday shopping period and iPhone launches. The Q1 2025 results follow exactly the same pattern.

In the first quarter, Apple's revenue hit $124.3 billion, up from $119.58 billion reported one year ago in Q1 2024.

Bar chart showing quarterly revenue and gross margin from 2017 to 2025. Blue bars represent revenue, green bars represent gross margin. Revenue generally exceeds gross margin each quarter.
AAPL quarterly revenue and gross margin



Broken down to units, iPhone revenue reached $69.1 billion, marginally down from $69.7 billion in Q1 2024. iPad revenue went up from $7.02 billion last year to $8.088 billion this time.

Mac revenue was largely static in Q1 2024 at $7.78 billion, while in Q1 2025, it rose to $8.987 billion. Wearables, Home, and Accessories managed to hit $11.747 billion, down from $11.95 billion in Q1 2024.

Services, the very reliable sector for the company, continued its positive growth streak. The $26.34 billion in Q1 2025 is up from $23.12 billion recorded in Q1 2024.

Apple's board of directors declared a cash dividend of $0.25 per share of common stock. The Earnings Per Share is listed at $2.41.

During the period, Apple benefited from quite a few preceding product launches. The Q4 launches of the iPhone 16 range, AirPods Max with USB-C, the Apple Watch Series 10, and the black Apple Watch Ultra 2 all enjoyed a full quarter of holiday shopping sales.

Bar chart showing quarterly revenue from 2017 to 2025 for iPhone, iPad, Mac, Services, and Wearables, Home, and Accessories, highlighting highest revenue from iPhones.
AAPL Units Revenue



As usual, the results are followed by the conference call with investors and analysts. Tim Cook will be in attendance as CEO, but so will Kevan Parekh, who is replacing Luca Maestri as CFO.

Maestri stepped down in January, allowing the VP of Financial Planning and Analysis to take over his role.

"Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago," said Tim Cook, Apple's CEO. "We were thrilled to bring customers our best-ever lineup of products and services during the holiday season.

"Our record revenue and strong operating margins drove EPS to a new all-time record with double-digit growth and allowed us to return over $30 billion to shareholders," said Kevan Parekh. "

On a regional basis, revenue from the Americas grew from $50.4 billion one year ago to $52.6 billion. Europe similarly saw an improvement from $30.4 billion to $33.9 billion.

Greater China revenue dipped from $20.8 billion to $18.513 billion, while Japan grew from $7.7 billion to $10.3 billion. Rest of Asia Pacific rounds out the list with $10.291 billion, a marginal improvement over Q1 2024's $10.162 billion.



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  • Reply 1 of 30
    JFC_PAjfc_pa Posts: 955member
    lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

    Good one. More in line with the text itself “marginal”. 

    Buy a better headline writer. 
    williamlondonssfe11thtJapheysunman42Chidorothranggrandact73dewmesdw2001
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  • Reply 2 of 30
    JFC_PA said:
    lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

    Good one. More in line with the text itself “marginal”. 

    Buy a better headline writer. 
    Not clear where you got that number, that had neither a per cent symbol nor a unit after it. iPhone sales revenue declined $600M. While that's notch in terms of the overall sales picture for Apple, it's a fair chunk of change. I mean, would you turn $600M down if someone offered it to you?
    Chidorograndact73ronncharlesnmuthuk_vanalingamwatto_cobraddawson100neoncat
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  • Reply 3 of 30
    Dang. 

    5 billion dollar increase overrall

    and the Mac surged by a billion. Or around 11% growth, contributing to 20% of the overrall 5b gain over last year.  Nice. 

    It’s looking like the m series is a hit for Mac’s, with this latest quarter unit numbers being anywhere from 35% - 46 %percent greater than the recent intel years. Wow. 
    edited January 30
    jas99ronnAlex_Vwatto_cobraMisterKit
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  • Reply 4 of 30
    thttht Posts: 5,808member
    This is from the prepared statement during the conference call. 
    "iPad revenue was $8.1 billion, up 15% year over year, driven by the new iPad Mini and latest iPad Air, the iPad install base reached another all time high, and over half of the customers who purchased an iPad during the quarter were new to the product. Customer satisfaction was at 96% in the US. Based on the latest reports from 451 Research."

    Remember the rumors that sales of the M4 iPad Pro were not good, primarily sourced from Ross Young or Ming Chi Kuo who said the Tandem OLEDs weren’t driving sales, and manufacturing for this or that Tandem OLED part was being reduced or shut down?

    So. Who is bullshitting who here?

    It could be all sales of the iPad 10 and iPad mini? That would be really good news. There would be 2x to 3x more iPads in the market as iPP ASP is about 2x and 3x that of the iPad 10 and mini.

    Likely, just status quo, with all products getting 10% to 20% more sales YoY in the holiday quarter?
    ronnwatto_cobraneoncat
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  • Reply 5 of 30
    tht said:
    Remember the rumors that sales of the M4 iPad Pro were not good, primarily sourced from Ross Young or Ming Chi Kuo who said the Tandem OLEDs weren’t driving sales, and manufacturing for this or that Tandem OLED part was being reduced or shut down?

    So. Who is bullshitting who here?
    They did say "driven by the new iPad Mini and latest iPad Air". I would interpret that to mean that those were the two biggest sellers.
    grandact73iOS_Guy80ronnwatto_cobra
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  • Reply 6 of 30
    pslicepslice Posts: 155member
    Maybe Apple should be selling their Macs harder than the iPhone. 
    forgot usernamehammeroftruthwatto_cobrawilliamlondon
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  • Reply 7 of 30
    JFC_PAjfc_pa Posts: 955member
    How hard is math? 

    IPhone iPhone 2024 Q1 sales (69.7)  minus iPhone 2025 sales (69.1), divide the result (0.6 billion) by the 2024 number: voila! The difference.  0.860832137733142 percent if the original 0.008608321377331 doesn’t work for you. 

    “Marginally” off is about right. 


    watto_cobrawilliamlondonneoncat
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  • Reply 8 of 30
    JFC_PA said:
    How hard is math? 

    IPhone iPhone 2024 Q1 sales (69.7)  minus iPhone 2025 sales (69.1), divide the result (0.6 billion) by the 2024 number: voila! The difference.  0.860832137733142 percent if the original 0.008608321377331 doesn’t work for you. 

    “Marginally” off is about right. 


    Well, when you put it that way, Apple is obviously back in beleaguered territory. 
    dewmeronnwatto_cobraneoncat
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  • Reply 9 of 30
    danoxdanox Posts: 3,510member
    sunman42 said:
    JFC_PA said:
    lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

    Good one. More in line with the text itself “marginal”. 

    Buy a better headline writer. 
    Not clear where you got that number, that had neither a per cent symbol nor a unit after it. iPhone sales revenue declined $600M. While that's notch in terms of the overall sales picture for Apple, it's a fair chunk of change. I mean, would you turn $600M down if someone offered it to you?

    So with new M4 hardware, Mac’s and iPads Apple sold $2 billion more than last year at this time and that with the Mac’s being introduced very late in the year, once again, if the Mac’s had been introduced at the end of August beginning of September before the back to school rush, Apple probably would’ve have sold another one or two billion dollars in the quarter. 

    And that’s with the M4 Studio being missing in action. Apple is still missing in action leaving billions on the table when it comes to servers, despite having the best SOC’s in Apple Silicon today, hopefully that will change with the current upset in the AI model area.

    600 million less sales revenue for the iPhones probably means Apple iPhone sales in China and USA were flat in both countries. 
    edited January 30
    ronnwatto_cobrawilliamlondonneoncat
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  • Reply 10 of 30
    sdw2001sdw2001 Posts: 18,043member
    sunman42 said:
    JFC_PA said:
    lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

    Good one. More in line with the text itself “marginal”. 

    Buy a better headline writer. 
    Not clear where you got that number, that had neither a per cent symbol nor a unit after it. iPhone sales revenue declined $600M. While that's notch in terms of the overall sales picture for Apple, it's a fair chunk of change. I mean, would you turn $600M down if someone offered it to you?

    It’s less than 1%.  Hardly “slumping”.   Problem is Wall Street culture, and those who write about it expecting exponential growth not just in the bottom line, but  individual segments as well.  Meanwhile, Apple is selling almost a quarter trillion dollars worth of iPhones every year.  

    Aulanifred19secondkox2ronnwatto_cobraneoncat
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  • Reply 11 of 30
    thttht Posts: 5,808member
    tht said:
    Remember the rumors that sales of the M4 iPad Pro were not good, primarily sourced from Ross Young or Ming Chi Kuo who said the Tandem OLEDs weren’t driving sales, and manufacturing for this or that Tandem OLED part was being reduced or shut down?

    So. Who is bullshitting who here?
    They did say "driven by the new iPad Mini and latest iPad Air". I would interpret that to mean that those were the two biggest sellers.
    Interesting. Just based on price alone, I would expect the iPad 10 to be 50% of devices sold. That $350 price makes it really attractive especially with discounts last quarter. 

    The iPad mini would have a sales bump as it was new, but that’s a relative sales bump from a small number. Like 5% of iPad units to 8%. 

    iPad Pro vs iPad Air? Yes, I can see the Air cannibalizing Pro iPads. It is actually hard to tell the difference between the two in the Apple Store. The OLED won’t show itself until you see it in dark environments, so tough sell. That’s when I the small and big iPad Pros should increase in display size and more distinctive colors. 
    watto_cobra
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  • Reply 12 of 30
    blastdoorblastdoor Posts: 3,669member
    Mac revenue was largely static in Q1 2024 at $7.78 billion, while in Q1 2025, it rose to $8.987 billion

    How is that “static”?

    9secondkox2fred1ronnwatto_cobra
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  • Reply 13 of 30
    charlesncharlesn Posts: 1,296member
    Key takeaways from this report:

    1) The genius of Cook's leadership and vision in successfully guiding Apple to a place where it no longer lives or dies on the performance of iPhone. Phone sales were down over 11% in China and somewhat soft overall, and the stock went up 3%. Why? One word: Services.

    2) Cook's Services Division continues its explosive growth: revenue up 15% for the quarter, YOY, to a stunning $26.34 billion for Q1. Did I mention this is a business with nearly 80% margins? With Services, Cook is about as close as legally possible to a business that prints money.  

    3) Solid performance all around. The continued iterations and evolution across the product lines continue to drive robust sales.

    4) Strong growth in iPad sales reveals stupidity of much tech commentary and rumors. "The new iPad Mini is a worthless upgrade!" "Nobody's buying the iPad Pros." Blah, blah blah. Turns out the Mini and Air were prime drivers of growth (no surprise, they're two key mainstream models) and you simply don't post this kind of revenue growth if your two most expensive, top-of-the-line models are tanking. Even better was that half of all iPad purchases were made by new buyers. 


    ronndanoxwatto_cobraddawson100neoncat
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  • Reply 14 of 30
    fred1fred1 Posts: 1,147member
    sdw2001 said:
    sunman42 said:
    JFC_PA said:
    lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

    Good one. More in line with the text itself “marginal”. 

    Buy a better headline writer. 
    Not clear where you got that number, that had neither a per cent symbol nor a unit after it. iPhone sales revenue declined $600M. While that's notch in terms of the overall sales picture for Apple, it's a fair chunk of change. I mean, would you turn $600M down if someone offered it to you?

    It’s less than 1%.  Hardly “slumping”.   Problem is Wall Street culture, and those who write about it expecting exponential growth not just in the bottom line, but  individual segments as well.  Meanwhile, Apple is selling almost a quarter trillion dollars worth of iPhones every year.  

    It’s slumping when Apple and everyone else wanted and expected growth, not loss, no matter how small the growth. 
    ronnwatto_cobrawilliamlondonddawson100
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  • Reply 15 of 30
    fred1 said:
    sdw2001 said:
    sunman42 said:
    JFC_PA said:
    lol. A 0.008608321377331 drop in phone sales revenue is “slumping”?

    Good one. More in line with the text itself “marginal”. 

    Buy a better headline writer. 
    Not clear where you got that number, that had neither a per cent symbol nor a unit after it. iPhone sales revenue declined $600M. While that's notch in terms of the overall sales picture for Apple, it's a fair chunk of change. I mean, would you turn $600M down if someone offered it to you?

    It’s less than 1%.  Hardly “slumping”.   Problem is Wall Street culture, and those who write about it expecting exponential growth not just in the bottom line, but  individual segments as well.  Meanwhile, Apple is selling almost a quarter trillion dollars worth of iPhones every year.  

    It’s slumping when Apple and everyone else wanted and expected growth, not loss, no matter how small the growth. 
    They would have had more growth if AI would have shipped on time and to more countries. It was delayed and released piecemeal.  Siri was mostly MIA on what it was supposed to do to round out AI and has gotten worse.  

    People are not buying new iPhones for AI, they’re buying them for the same reasons why they bought the previous models. 



    ronnwatto_cobrawilliamlondon
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  • Reply 16 of 30
    charlesncharlesn Posts: 1,296member
    fred1 said
    It’s slumping when Apple and everyone else wanted and expected growth, not loss, no matter how small the growth. 
    No one who is seriously invested in Apple and follows the company for that reason was expecting iPhone growth. It was more a question of how much it would be off, especially in China. These are not alarming numbers by any means, but they continue the trend of iPhone no longer being a growth product at Apple--and that has the potential to be a huge problem when it happens to THE cornerstone product of a company whose stock is priced for growth. Fortunately, Cook developed the answer for the flatlining of IPhone growth: the hugely profitable and rapidly growing Services Division, which will likely surpass iPhone profits within the next few years. 
    sconosciutothtronnwatto_cobraddawson100
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  • Reply 17 of 30
    danoxdanox Posts: 3,510member
    pslice said:
    Maybe Apple should be selling their Macs harder than the iPhone. 

    In light of the fact that Apple Silicon based computers right now is one of the best designs that can be used for AI research at the developer small company desktop level, and the fact that some of the new techniques used in DeepSeek (if true) combined with the fact that many more new techniques will be spawned out of so many smart, talented people worldwide having a rethink on their previous approach towards creating new more efficient AI models.

    Apple definitely should be looking to create and sell more powerful M4, M5, M6 Ultras, with UMA memory combined with big bandwidth, Apple seems to be in a very good position at the right time in comparison to their competition. Intel, AMD, and the high unsustainable in time 1000 wattage Nvidia all appear to be lagging.

    The M2 Studio Ultra runs everything at 107 watts, and the M4 Studio Ultra promises to be even more fuel efficient and faster if the M4 iPad Is any indication.
    edited January 31
    watto_cobraMisterKitneoncat
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  • Reply 18 of 30
    danoxdanox Posts: 3,510member
    charlesn said:
    fred1 said
    It’s slumping when Apple and everyone else wanted and expected growth, not loss, no matter how small the growth. 
    No one who is seriously invested in Apple and follows the company for that reason was expecting iPhone growth. It was more a question of how much it would be off, especially in China. These are not alarming numbers by any means, but they continue the trend of iPhone no longer being a growth product at Apple--and that has the potential to be a huge problem when it happens to THE cornerstone product of a company whose stock is priced for growth. Fortunately, Cook developed the answer for the flatlining of IPhone growth: the hugely profitable and rapidly growing Services Division, which will likely surpass iPhone profits within the next few years. 

    It’s kind of ironic that a new AI model DeepSeek out of China probably is going to help Apple sell more Macs if only they will start to release make Mac servers and more powerful Mac Studios Ultra’s and possibly the phantom Mac Pro for AI.

    Mac trucks have to be made Apple can’t keep leaving billions on the table. Apple is uniquely in the right place with Apple Silicon, to sell computer solutions that don’t use the energy of a nuclear power plant i.e. Nvidia which is unsustainable in the long run, the moat Nvidia has built will break apart like the one OpenAI, Microsoft, and Google who thought they had in AI until DeepSeek came along (the jury is out, but it’s not looking too good for the moat builders particularly OpenAI).
    edited January 31
    watto_cobraneoncat
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  • Reply 19 of 30
    thttht Posts: 5,808member
    charlesn said:
    fred1 said
    It’s slumping when Apple and everyone else wanted and expected growth, not loss, no matter how small the growth. 
    No one who is seriously invested in Apple and follows the company for that reason was expecting iPhone growth. It was more a question of how much it would be off, especially in China. These are not alarming numbers by any means, but they continue the trend of iPhone no longer being a growth product at Apple--and that has the potential to be a huge problem when it happens to THE cornerstone product of a company whose stock is priced for growth. Fortunately, Cook developed the answer for the flatlining of IPhone growth: the hugely profitable and rapidly growing Services Division, which will likely surpass iPhone profits within the next few years. 
    Yeah. For some perspective, Apple has something like 1.4 billion active iPhones units worldwide. There's 8 billion people. iPhone ASPs are about $800, about 3 times higher than the ASP of an Android devices. Apple has a big chunk of the high end market, about 15 to 20%. That's incredible!

    Everyone who can afford an iPhone has one. Any changes in unit sales are subject to small little changes, both up and down. Macroeconomics, political-social changes, etc. There isn't any more growth at the high end of the market. The only way Apple can sell more iPhones is to sell cheaper ones at $150 to $300 MSRP.

    Apple isn't going to do that outside having a killer service with killer service revenues. It's a vicious circle at the low-end. That part of the market doesn't have a lot of free-flowing cash, and therefore won't be spending much on services either. Its end up as a no-margin business, and Apple doesn't do that.
    danox
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  • Reply 20 of 30
    charlesncharlesn Posts: 1,296member
    tht said:
    Everyone who can afford an iPhone has one. 
    Maybe not. The discussion of India on the call was really interesting. Second-largest smartphone market in the world, iPhone was the top selling model there this quarter, but still has very low penetration vs the potential market, so iPhone could see significant growth with a market of that size. Seems like Apple is really gearing up to make a much bigger and much more serious push into India. At the very least, maybe growth in India can help offset the issues in China. 
    ronn
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