Apple Q1 2025 Earnings: Revenue Up, iPhone Sales Down in China
Key Metrics:
* Revenue: $124.3 billion (+4% YoY)
* Net income: $36.33 billion (+7.1% YoY)
* Active device install base: 2.35 billion (+7%)
* Subscriptions: 1 billion
iPhone Sales Weakness in China
* iPhone sales dropped 11.1% in China, the largest decline since Q1 2024.
* Intense competition from domestic manufacturers (e.g., Oppo, Vivo, Huawei) cited as a factor.
* Apple Intelligence, a key selling point for iPhone 16, not yet available in China.
AI Platform Rollout and Expansion Plans
* Apple Intelligence platform contributed to stronger iPhone 16 performance in markets where it was available.
* Platform currently available in seven English-speaking countries; Chinese support expected later this year.
* Regulatory and security issues may delay China rollout.
Other Growth Areas
* Mac and iPad revenue grew 15% due to new product launches.
* Services revenue increased 14%, driven by growth in Apple TV+, Apple Music, and iCloud.
Analyst Outlook
* Analysts remain positive, citing the company's ability to beat expectations amid headwinds.
* Apple's delayed entry into generative AI shielded the company from recent market volatility.