Apple registers record quarter revenue with strong services sales but misses iPhone target
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Apple has reported its best ever revenue numbers for a quarter on Friday morning.
Apple said that its quarterly revenue went up by 4 percent year over year to a record $124.3 billion.
Both Mac and iPad also saw a marginal growth, thanks to newer models, powered by Apple’s latest silicon.
Apple, world’s most valuable company, has reported its best ever revenue numbers for a quarter on Friday morning on the back of strong services sales and marginal improvements for both Mac and iPad. However, it’s big hope — the AI-powered iPhones failed to match the expected numbers. It’s clear that the company continues to face major challenges in China and generally with the iPhone sales.
Apple said that its quarterly revenue went up by 4 percent year over year to a record $124.3 billion, and quarterly diluted earnings per share were at $2.40, up 10 percent year over year. These numbers are for its fiscal 2025 first quarter ended December 28, 2024.
“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 in company’s earnings call. This growth was largely driven by its high-margin services division, which includes the App Store, AppleCare, and Apple Music. The segment achieved a record $26.3 billion in quarterly revenue, reflecting a 14% increase from the previous year.
Both Mac and iPad also saw a marginal growth, thanks to newer models, powered by Apple’s latest silicon.
However, the iPhone 16 series, powered by Apple Intelligence failed to match the expected numbers. Still, iPhone was a top-selling model in the US, urban China, India, the UK, France, Australia, and Japan. Apple seems to be optimistic on it and plans to bring Apple Intelligence to more markets later this year.
“We were thrilled to bring customers our best-ever lineup of products and services during the holiday season. Through the power of Apple silicon, we’re unlocking new possibilities for our users with Apple Intelligence, which makes apps and experiences even better and more personal. And we’re excited that Apple Intelligence will be available in even more languages this April,” Cook said.
Starting April, Apple Intelligence will be available in more languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese, as well as localised English to Singapore and India.
Cook also revealed that Apple remains keen on Indian market and remains committed to four new stores in the country.
“India set a December-quarter record during the quarter, and we’re opening more stores there, we’ve announced that we’re going to open four new stores there,” he said. As of now, Apple runs two stores in India — one each in Delhi and Mumbai — both of which have helped boost its offline presence in the country.
“The iPhone was the top selling model in India for the quarter, and it’s the second largest smartphone market in the world and the third largest for PCs and tablets, and so there’s a huge market, and we have very modest share in these markets, and so I think there’s lots of upside there, and that’s just one of the emerging markets,” he said.