CEO Tim Cook dinner mentioned he’s “significantly eager on India” the place the corporate set a income file for the December quarter, at the same time as world iPhone gross sales noticed a slight decline.
“India set a December quarter file… The iPhone was the highest promoting mannequin in India for the quarter,” Cook dinner mentioned throughout the first quarter earnings name.
The iPhone maker’s development in India contrasts with the 11.1% year-on-year decline in web gross sales in China—its third-largest market by gross sales—within the December quarter.
Cook dinner, who referred to China as “probably the most aggressive market on the earth,” famous that over half of the decline that Apple skilled there was pushed by a change in channel stock from the start to the top of the quarter.
“A part of the explanation for that’s that our gross sales had been a bit greater than we forecasted them to be towards the top of the quarter. And so we ended a bit leaner than we had anticipated to,” the Apple chief mentioned.
In the meantime, as Apple reduces its reliance on China for manufacturing, India is changing into a key manufacturing hub for the iPhone maker. Apple now produces its flagship iPhones and equipment in India via companions within the nation.
“In case you have a look at the manufacturing we do there (in India), we do manufacturing each for the home market, and we export. Our enterprise wants a sure economies of scale for it to make sense to fabricate in (the) nation,” Cook dinner famous.
International efficiency
The California-based firm reported its “finest quarter ever,” posting a income of $124.3 billion—up 3.9% year-over-year—within the first quarter of fiscal yr 2025 (Q1 FY25), which ended on December 28, 2024.
Apple expects complete income within the March quarter (Q2 FY25) to develop within the “low to mid-single digits” year-over-year, regardless of overseas trade headwinds, that are anticipated to negatively affect income by about 2.5 proportion factors year-over-year, in response to Apple’s Chief Monetary Officer Kevan Parekh.
The iPhone maker’s backside line surged 7.1% YoY to $36.3 billion in Q1 FY25.
Whereas Apple’s flagship smartphones have pushed the corporate’s gross sales, its providers phase has been steadily rising and changing into an more and more vital income.
Following a surge within the earlier quarter after two consecutive quarters of decline, world iPhone gross sales dropped 0.8% YoY to $69.1 billion within the first quarter of 2025, from $69.7 billion within the yr in the past interval.
Nonetheless, greater Mac and iPad gross sales offset the slight decline in iPhone gross sales within the December quarter, driving general product income.
Mac merchandise generated $8.9 billion in income, up 15.5% YoY. In response to Parekh, Mac’s put in base reached an all-time excessive, with Apple witnessing a double-digit development for each upgraders and new prospects of the Mac.
“The Mac was pushed by the very sturdy uptake on our new merchandise throughout the quarter and the continued success of the MacBook Air,” Cook dinner mentioned.
“We’re extremely happy with each the Mac and the iPad for the quarter,” he added.
iPad gross sales additionally shot up throughout the quarter, touching $8.1 billion, up 15.1% YoY, pushed by sturdy curiosity for Apple’s newest merchandise.
Whereas gross sales for wearables, residence, and equipment declined barely, the general gross sales of Apple merchandise within the December quarter reached $97.9 billion, up 1.6% YoY.
In service income, Apple set an all-time income file of $26.3 billion for the December quarter, rising 13.9% from a yr in the past, Cook dinner highlighted.
“Providers continues to see sturdy momentum, and the expansion of our put in base of energetic units offers us nice alternatives for the long run. We additionally see elevated buyer engagement with our providers choices,” famous Parekh.
Apple Intelligence
In September final yr, the tech big launched its newest flagship smartphones, iPhone 16 Professional and iPhone 16 Professional Max, alongside iPhone 16 and iPhone 16 Plus powered by Apple Intelligence—the corporate’s very personal model of synthetic intelligence.
Later in 2024, Apple expanded its product line-up with Apple Intelligence, with new launches, together with a brand new iMac, that includes the M4 chip; an all-new Mac mini powered by the M4 and new M4 Professional chips; a brand new MacBook Professional, powered by the M4 household of chips, which has two new chips—M4 Professional and M4 Max—together with M4. All these merchandise could have entry to Apple Intelligence.
There may be additionally help for a spread of older units: iPad Professional, iPad Air, MacBook Air, MacBook Professional, iMac, Mac mini (all that includes M1 chips or newer), Mac Studio with M1 Max or later, Mac Professional with M2 Extremely, alongside iPhone 15 Professional and iPhone 15 Professional Max.
“We did see that the markets the place we had rolled out Apple Intelligence, that the year-over-year efficiency on the iPhone 16 household was stronger than these the place Apple Intelligence was not accessible,” Cook dinner identified.
He added that, in April, the corporate is bringing Apple Intelligence into extra languages, together with French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese language, in addition to localised English, to Singapore and India.
