Apple quarterly revenue increases, even as China sales decline 11% | TechCrunch
Jan 30, 2025 - techcrunch.com
Apple's latest earnings report for Q1 2025 showed mixed results, with overall revenue rising 4% to $124.3 billion, surpassing Wall Street expectations, despite a decline in iPhone sales. The company reported a net income increase of 7.1% to $36.33 billion. However, Apple faced an 11.1% sales drop in China, attributed to intense competition from domestic brands like Oppo and Vivo, and challenges with the rollout of its Apple Intelligence platform. CEO Tim Cook highlighted that markets with Apple Intelligence saw better iPhone 16 performance, but the platform's availability is limited, with Chinese language support expected later this year. Regulatory and security issues, as well as a stalled partnership with Baidu, have delayed its launch in China.
Despite the challenges, Apple's Mac and iPad revenue grew by 15%, and services like Apple TV+, Apple Music, and iCloud saw a 14% increase. The company now has 2.35 billion active devices and one billion subscriptions across its offerings. Analysts view the results positively, as Apple exceeded expectations in key areas. The company's late entry into the generative AI space also provided some protection against market shifts, as seen with the impact of DeepSeek R1's platform on competitors like NVIDIA.
Key takeaways:
Apple's overall revenue in Q1 2025 increased by 4% to $124.3 billion, despite a decline in iPhone sales and an 11.1% drop in sales in China.
The company's net income rose by 7.1% to $36.33 billion, with growth in Mac, iPad, and services revenue contributing to the positive results.
Apple Intelligence, a key feature of the iPhone 16, is not yet available in China, impacting sales performance in the region.
Apple's install base has grown to 2.35 billion active devices, and the company now has one billion subscriptions across its content offerings and third-party apps.
