Apple sees record quarterly earnings despite sluggish iPhone sales, services keep numbers high

Apple has revealed its financial results for the first quarter of 2025, posting a record-breaking $124.3 billion in revenue. This marks a 4 per cent increase from the same period last year, when the company earned $119.58 billion. 

As usual, the holiday season and iPhone launches played a pivotal role in driving these strong numbers. In the first quarter, iPhone revenue stood at $69.1 billion, a slight dip from $69.7 billion in Q1 2024.

Strong performance from services and other products

While iPhone sales showed a modest decline, other product categories and services helped bolster Apple’s performance. iPad revenue rose to $8.088 billion, up from $7.02 billion last year. Mac sales also saw growth, increasing from $7.78 billion to $8.987 billion. The wearables, Home, and Accessories segment brought in $11.747 billion, slightly down from $11.95 billion in Q1 2024. Services, always a reliable revenue stream for Apple, continued its positive trajectory, generating $26.34 billion—an increase from $23.12 billion the year before.

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Apple’s board of directors declared a cash dividend of $0.25 per share of common stock, while the company’s earnings per share (EPS) reached $2.41. These figures reflect the solid financial health Apple maintains, despite the slight dip in iPhone sales.

Regional growth and challenges

On the regional front, Apple saw growth in the Americas and Europe. Revenue from the Americas grew from $50.4 billion to $52.6 billion, while Europe’s revenue climbed from $30.4 billion to $33.9 billion. However, Greater China saw a decline in revenue, dropping from $20.8 billion to $18.5 billion. Japan, on the other hand, experienced impressive growth, with revenue rising from $7.7 billion to $10.3 billion. The Rest of Asia Pacific also saw a small improvement, reaching $10.29 billion from $10.16 billion last year.

India and Emerging Markets: Key areas of growth

During the earnings call, Cook highlighted the company’s growing efforts in India and emerging markets. Apple Intelligence, the company’s AI platform, is being expanded to more languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese, with plans for localized English in India and Singapore.

Cook also shared that India set a record in the December quarter, with the iPhone being the top-selling device in the country. Apple’s efforts to expand its presence in India are evident, with plans to open four new stores. India is the second-largest smartphone market globally, and with a relatively small share, Apple sees significant potential for growth. Kevan Parekh, the new CFO, echoed Cook’s sentiment, noting that emerging markets, particularly India, present a great opportunity for the company’s future success.