Highlights from Apple’s Q1 2025 Financials and Earning Call

Apple company logo seen on Macbook M1 laptop surrounded by US dollar banknotes. Concept. Selective focus. United Kingdom, Stafford, December 18, 2021. Credit: Ascannio / Adobe Stock
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Apple announced its Q1 2025 earnings earlier today, posting quarterly revenue of $124.3 billion and a net quarterly profit of $36.3 billion, or $2.40 per diluted share, setting an all-time quarterly record. As is traditional, Apple also held a conference call on which Apple CEO Tim Cook and Apple’s new CFO Kevan Parekh provided insight into Apple’s holiday quarter performance.

At the beginning of the call, Tim Cook took a moment to discuss the Los Angeles wildfires that began earlier this month. “LA is home to many of our team members… we are contributing to the relief efforts and we are continuing to support our teams and the local community.”

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Cook then began discussing Apple’s fiscal Q1 2025 quarter, noting that Apple made $124.3 billion, up 4% from last year, setting an all-time record. Earnings per share were $2.40, up 10% from last year. The company has set records in most countries and regions around the globe, including the Americas, Europe, Japan, and the rest of Asia-Pacific.

Cook noted there are now over 2.35 billion active iPhones, iPads, Macs, and other Apple devices worldwide, setting another new record for Apple, up from the 2.2 billion active devices worldwide numbers the Cupertino company shared in February 2024.

Cook also mentioned that Apple Vision Pro availability has expanded to more countries! “Users are enjoying incredible immersive entertainment experiences and powerful new features and enhancements to Mac virtual display.”

Cook discussed new store openings in China, Spain, and the United States. A fifth store will open in the UAE later this year, and the online store is coming to Saudi Arabia. Apple will also begin opening flagship stores in Saudi Arabia in 2026.

New Apple CFO Kevan Parekh also had plenty to say on his first earnings call, discussing the company’s Q1 2025 earnings and results.

“The iPhone grew in the majority of markets we track and reached all time revenue records in several developed markets, including Canada, Western Europe and Japan, and in emerging markets like Latin America, the Middle East and South Asia. The iPhone active install base grew to an all time high in total and in every geographic segment. It also set an all time record for upgraders… The company continues to see high levels of customer satisfaction in the US at 96% as measured by 451 Research,” said Parekh.

Parekh said the increase in iPad revenue ($8.1 billion, up 15% year over year), was driven by the releases of new iPad mini and iPad Air models, pushing the iPad install base to another all time high. Over half of the customers purchasing an iPad during the quarter were first-time owners. Customer satisfaction was at 96% in the US.

Parekh noted that Apple has a financial stash of $141 billion in cash and marketable securities after repaying $1 billion in maturing debt and decreasing commercial paper by $8 billion. The company has $97 billion in total debt, with $45 billion in net cash after returning more than $30 billion to shareholders through $3.9 billion in dividends and $23.3 billion in repurchases of 100 million Apple shares.

March quarter revenue is expected to grow year-over-year in the low to mid-single digits. Services revenue is expected to increase by low single digits year-over-year, with a year-over-year growth rate comparable to the December quarter except for FX challenges. The company expects gross margin between 46.5 and 47.5, operating expenses between $15.1 and $15.3 billion, and an expected tax rate of around 16%.

The duo also discussed the headwinds Apple faces in China, where revenue for the quarter was down 11% year-over-year. Parekh said that more than half of the decline was due to a change in channel inventory from the beginning to the end of the quarter. He also noted that Apple Intelligence had not yet rolled out in China and that iPhone sales were better in markets where Apple Intelligence was available than in markets where it was not.



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