Apple’s latest earnings were a mixture full of sales of iPhone that slide and contrasted by increasing revenue.
By reporting after Bell Thursday, the overall entrances of the iPhone producer in the first quarter of 2025 beat Wall Street expectations, with a 4% Bump at $ 124.3 billion in the same period last year.
Apple recorded a net income of $ 36.33 billion, growing 7.1% of $ 33.92 billion in the same year of a year.
The increase also came when the company lost iPhone estimates, while it has had a drop in 11.1% sales in China, up to $ 18.51 billion. It is the largest drop in this key region by a dip of almost 13% in the first quarter of 2024.
The largest world smartphone market proved to be increasingly difficult for the company, due to the most intense competition from national producers, including Oppo and alive. Huawei, who saw a huge drop in sales while commercial restrictions have been imposed by the first Trump administration, has since grown in its country of origin.
In a conversation with the CNBC, the TIM Cook CEO has placed a little guilt at the foot of Apple’s intelligence – which is not currently available in China – together with many other key markets. The platform for the generative of small Apple models is by far the largest strength for the iPhone 16, which has debuted in the last few years.
“During the December quarter, we saw that in the markets where we had launched Apple Intelligence, that the performances year on the year on the iPhone 16 family were stronger than those markets in which we had not launched the Apple intelligence,” Cook said.
The AI platform is currently available in English (Australia, Canada, Ireland, New Zealand, South Africa, the United Kingdom or USA). Chinese is among the languages that arrive by the end of the year, but Apple has yet to announce if the function will eventually arrive in continental China.
The regulatory approval and safety restrictions are among the issues between Apple’s intelligence and an implementation of China. According to reports, the company has collaborated with the home giant, Baidu. But that agreement apparently hit its road blocks.
The CEO also indicated the inventory channel, which limited the availability of new hardware in the country.
IPhone sales decreased slightly on an annual basis, despite the anticipation of the company of a thrust led by the Apple intelligence. The platform has experienced a slow launch in iOS 18, with characteristics that arrive in waves. Some characteristics, such as the summary of the news, also had a rocky launch. Apple paused the functionality to face a problem with incorrect incorrect information.
Both Mac entrances and iPads have grown by 15% for the quarter, thanks to the launch of a new iPad Mini, IMAC, Mac Mini and MacBook Pro. The services – which include things like Apple TV+, Apple Music and iCloud – have seen A growth of 14% for the quarter.
All in all, the company now has a base of installation of 2.35 billion active devices compared to 2.2 billion in the same period last year. Cook has also noticed that Apple now boasts a billion subscriptions in its offers for content and third -party apps.
Overall, analysts are positively greeting the news, since the company has beaten expectations in different categories, despite the contrary winds. At the beginning of this week, Apple’s late entry into the generative space also protected the company, since the arrival of the Deepseek R1 platform led to a great purchase for companies like Nvidia.
