Apple (AAPL, Financial) has released its financial results for the first quarter of fiscal year 2025, reporting a record revenue of $124.3 billion and net profit of $36.33 billion, surpassing market expectations. Earnings per share stood at $2.40, with a gross margin reaching 46.9%, marking a historical high. Following the report, Apple’s stock saw an initial dip before rising by 2.97% in after-hours trading, closing at $244.649.
Despite the overall strong performance, Apple's Greater China revenue declined by 11% year-over-year, with iPhone sales also slightly down, missing market expectations. CEO Tim Cook attributed these declines to changes in channel inventory and the delayed launch of Apple Intelligence in China.
Breaking down the product lines, iPhone sales reached $69.14 billion, below the anticipated $71.13 billion. Meanwhile, iPad and Mac sales exceeded expectations, at $8.09 billion and $8.99 billion respectively. Wearables, home, and accessories generated $11.75 billion, slightly below forecasts. Services, including the App Store and Apple Music, hit a record $26.34 billion, surpassing expectations.
Analysts highlight the potential impact of Apple’s AI advancements, particularly with the integration of DeepSeek, which could enhance user experience and reduce AI inference costs. This positions Apple to potentially integrate more AI features into its products, like smartphones and AR glasses, enhancing its competitive edge.
Looking ahead, Apple's challenge will be balancing its cautious approach with the market's demand for AI innovation, especially as it plans to expand Apple Intelligence to more languages, including Chinese.
