Apple Inc. Quarterly Report for Q1 Ended Dec 28, 2024

Summary

Apple Inc.'s Q1 2025 earnings report (ending December 28, 2024) shows robust growth, driven primarily by a significant surge in Services revenue, which climbed 14% year-over-year to $26.34 billion. This offset a slight 1% decline in iPhone revenue, which totaled $69.14 billion. Overall net sales increased by 4% to $124.3 billion, demonstrating the company's ability to expand its revenue base beyond its flagship product. The company's profitability also saw a healthy improvement, with net income rising by 7% to $36.33 billion and diluted earnings per share increasing to $2.40 from $2.18 in the prior year period. This strong performance was supported by an expansion in the overall gross margin percentage to 46.9%, notably driven by a substantial 17% increase in Services gross margin. Apple continues its aggressive capital return program, repurchasing approximately $23.3 billion of its stock during the quarter, reflecting confidence in its financial position and commitment to shareholder value.

Key Highlights

• 1Total net sales grew 4% year-over-year to $124.3 billion, driven by strong performance in Services and other product categories.
• 2Services revenue saw substantial growth, increasing 14% to $26.34 billion, highlighting the increasing importance of Apple's ecosystem.
• 3iPhone revenue experienced a slight decrease of 1% to $69.14 billion, indicating a potential plateau or shift in demand for the flagship product.
• 4Diluted earnings per share increased to $2.40 from $2.18 in the prior year, demonstrating improved profitability.
• 5Gross margin improved to 46.9% from 45.9% in the prior year, largely due to the high-margin Services segment.
• 6Apple continued its significant capital return program, repurchasing $23.3 billion of its common stock and paying $3.9 billion in dividends.
• 7Net income increased by 7% to $36.33 billion, underscoring the company's strong operational efficiency and revenue growth.

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