Apple today held an earnings call to report results for the first fiscal quarter of 2025 (fourth calendar quarter of 2024), with Apple CEO Tim Cook and new Apple CFO Kevan Parekh providing insight into Apple's performance, holiday quarter product sales, and more.
We've highlighted the most interesting takeaways from the Q1 2025 earnings call.
iPhone Sales and Apple Intelligence
Services revenue was up, and there was an increase in Mac and iPad sales, but iPhone sales were down. iPhone revenue came in at $69.1 billion, down from $69.7 billion last year. Apple Intelligence, which debuted in updates to iOS 18, does not appear to have resulted in a major upgrade cycle.
Cook said that the iPhone 16 models are, however, selling better in markets where Apple Intelligence is available.
On Apple Intelligence adoption increasing over time, Cook said that since the feature set is limited to the iPhone 15 Pro models and the iPhone 16 models in the iPhone lineup, growth will come as people upgrade to newer devices. Cook also said he expects to see some improvement when Apple Intelligence becomes available in additional languages in April.
"And I think I know from my own personal experience, once you start using the features you can't imagine not using them anymore," Cook said. "I know I get hundreds of emails a day, and the summarization function is so important."
In a separate answer, Cook said that new Siri Apple Intelligence features will be coming "over the next several months." Siri features were expected in iOS 18.4, and it's not yet clear if Apple's plans have changed or the "next several months" means April.
Best Quarter to Date
Apple CEO Tim Cook said that Q1 2025 was Apple's best quarter to date with revenue of $124.3 billion, a four percent increase year-over-year.
Apple's installed base of active devices reached a new all-time high across all products and geographic segments, and Apple now has over 2.35 billion active devices worldwide. Sales in China were down, however. China brought in $18.5 billion, down from $20.8 billion last year.
Services Revenue
Services revenue continues to see notable growth, and the category brought in $26.3 billion, up 14 percent from $23 billion in the year-ago quarter.
All-time records were set in the Americas, Europe, and the rest of Asia-Pacific.
Paid subscriptions grew double digits, and Apple has more than a billion subscriptions across its services.
Mac Sales
Mac sales saw significant year-over-year growth, with revenue at $9 billion, up from $7.8 billion last year. Cook said Mac growth was thanks to new M4 Mac models.
There was double digit growth in both upgraders and people new to the Mac.
iPad Sales
iPad sales grew 15 percent, and Cook said it was largely driven by the iPad Air and the low-cost iPad rather than the iPad Pro. Over half of sales in the December quarter went to customers who were new to iPad.
DeepSeek
Cook was asked about DeepSeek, and the perspective that Apple will benefit from lower cost on-device compute. Cook said that he believes that "innovation that drives efficiency is a good thing."
Upcoming Products
When Cook was asked if there was "a lot of room for form factor innovation" for future iPhone models, Cook said that "there's a lot more to come" and that "there's a lot of innovation left on the smartphone."
Tariffs
On the potential for tariffs, Cook said that Apple is "monitoring the situation" and doesn't have anything more to say.
Next Quarter
In the March quarter, Apple expects its overall revenue to grow low to mid single digits with gross margin between 46.5 and 47.5 percent.
