MENA Newswire, CUPERTINO: Apple reported record revenue for its fiscal first quarter of 2025, buoyed by growth in services and gains in Mac and iPad sales, while iPhone revenue was roughly flat from a year earlier. The company said quarterly revenue rose 4% to $124.3 billion for the quarter ended Dec. 28, 2024, and diluted earnings per share increased 10% to $2.40.
Net income totaled $36.33 billion, compared with $33.92 billion in the same quarter a year earlier. Apple’s operating income was $42.83 billion, up from $40.37 billion, while total gross margin expanded to $58.28 billion and gross margin percentage increased to 46.9% from 45.9%. Apple said it generated $29.94 billion in cash from operations during the quarter.
Services revenue set a new all time high at $26.34 billion, up 14% from $23.12 billion a year earlier. Apple attributed services growth primarily to higher net sales from advertising, the App Store, and cloud services. Services gross margin was 75.0%, up from 72.8%, and services gross profit rose to $19.76 billion from $16.84 billion.
Product revenue totaled $97.96 billion, up from $96.46 billion in the prior year period. iPhone revenue was $69.14 billion versus $69.70 billion a year earlier. Mac revenue increased 16% to $8.99 billion, and iPad revenue increased 15% to $8.09 billion. Wearables, Home and Accessories revenue was $11.75 billion, down 2% from $11.95 billion.
Growth by region and product mix
By geography, the Americas remained Apple’s largest region, with sales rising to $52.65 billion from $50.43 billion. Europe sales increased to $33.86 billion from $30.40 billion. Japan sales rose to $8.99 billion from $7.77 billion, while sales in Rest of Asia Pacific were $10.29 billion, essentially flat compared with $10.16 billion.
Greater China was the only region to post a year over year decline, with net sales of $18.51 billion compared with $20.82 billion in the year earlier quarter. Apple said iPhone revenue represented a moderately higher proportion of net sales in Greater China, even as the region’s total sales fell. Across all regions, Apple’s total net sales increased 4% year over year.
Apple’s gross margin showed a widening gap between products and services. Product gross margin was $38.51 billion versus $38.02 billion a year earlier, with product gross margin percentage essentially unchanged at 39.3%. The stronger services margin helped lift overall profitability, with total gross profit rising to $58.28 billion from $54.86 billion.
Operating expenses rose to $15.44 billion from $14.48 billion. Research and development expense increased to $8.27 billion from $7.70 billion, while selling, general and administrative expense rose to $7.18 billion from $6.79 billion. Segment operating income increased across most regions, led by the Americas at $21.51 billion and Europe at $14.61 billion, while Greater China operating income was $8.16 billion.
Capital returns and balance sheet details
Apple continued returning capital to shareholders during the quarter. The company paid $3.86 billion in dividends and dividend equivalents and repurchased $23.61 billion of common stock, including 100 million shares repurchased for $23.3 billion. Apple reported $2.0 billion of commercial paper outstanding at quarter end, down from $10.0 billion at the end of the prior quarter, and total debt included fixed rate notes with a carrying amount of $94.8 billion.
Apple also reported total deferred revenue of $13.2 billion as of Dec. 28, 2024, up from $12.8 billion at the end of the prior quarter. The company said it expected 64% of total deferred revenue to be realized in less than a year, with the remainder recognized over longer periods.