Apple achieved an all-time high in revenue for its fiscal Q1 2025, reporting $124.3 billion—a 4% year-on-year growth. However, the tech giant faced a significant dip in China, its second-largest market, where sales fell by 11.1%, totaling $18.5 billion. This marks the largest decline in China sales since fiscal Q1 2024, when the company saw a 12.9% drop.
Despite the overall revenue boost, Apple’s net income dropped to $36.3 billion, reflecting a 7% decrease compared to the same period last year. Apple CEO Tim Cook attributed the Chinese sales slump to heightened competition in the region, calling it “the most competitive market in the world.” Additionally, he noted that inventory issues—where channel stock was not replenished with newer products—contributed to half of the decline.
The quarter also marked the first full three-month period for the iPhone 16 range, yet smartphone revenue remained flat at $69.1 billion. Cook expressed optimism for the future, particularly regarding potential innovations in smartphone design. “There’s a lot more to come,” he said, suggesting that Apple’s product pipeline remains strong.
Apple also introduced its Apple Intelligence AI software, which saw strong iPhone 16 sales in regions where it was available, although the feature is currently limited to English-speaking countries and isn’t yet accessible in China. Cook indicated that by April, the software will roll out in additional languages, including French, German, Spanish, Japanese, Korean, Portuguese, Simplified Chinese, and more.
In terms of services, which include subscriptions and licensing deals, Apple reported a record $26.3 billion in revenue—an impressive 14% increase. Strong performances in the Americas, Europe, and Asia-Pacific helped drive this growth, with Japan also reaching a December-quarter record.
Apple’s product revenue was up 2%, totaling $98 billion, driven by gains in iPad and Mac sales. Mac revenue surged by 16%, reaching $9 billion, while iPad grew by 15% to $8.1 billion. However, wearables and accessories saw a slight 2% decline, with sales dropping to $11.7 billion.
Despite the setbacks in China, Apple’s diversified portfolio and continued growth in other regions position the company well for future success.
Apple picture on pexels by babydov
