Q1 2025 Apple Inc Earnings Call Transcript
Key Points
- Apple Inc (AAPL) reported an all-time high revenue of $124.3 billion for the December quarter, marking a 4% increase year over year.
- The company achieved all-time revenue records across multiple regions, including the Americas, Europe, Japan, and Asia Pacific, with strong momentum in emerging markets.
- Services revenue reached an all-time record of $26.3 billion, growing 14% year over year, with significant growth in both developed and emerging markets.
- Apple's installed base of active devices reached a new record of over 2.35 billion, driven by high customer satisfaction and loyalty.
- The introduction of Apple Intelligence features has been well-received, contributing to stronger iPhone sales in markets where it is available.
- Greater China revenue declined by 11% year over year, with over half of the decline attributed to changes in channel inventory.
- Wearables, Home, and Accessories revenue decreased by 2% year over year, facing challenges compared to the previous year's product launches.
- Foreign exchange headwinds are expected to negatively impact revenue by about 2.5 percentage points in the upcoming quarter.
- The company faces competitive pressures in China, where Apple Intelligence has not yet been rolled out, affecting iPhone replacement cycles.
- Operating expenses increased by 7% year over year, reaching $15.4 billion, which may impact future profitability if not managed effectively.
Good afternoon, and welcome to the Apple Q1 fiscal year 2025 earnings conference call. My name is Suhasini Chandramouli, Director of Investor Relations. Today's call is being recorded.
Speaking first today are Apple's CEO, Tim Cook; and he'll be followed by CFO, Kevan Parekh. After that, we'll open the call to questions from analysts.
Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation and future business outlook, including the potential impact of macroeconomic conditions on the company's business and results of operations. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast.
For more information, please refer to the risk factors discussed in Apple's most recently filed annual report on Form 10-K and the Form 8-K filed with the SEC today,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
