Apple's Income Statement Visualized Q1 FY25
Apple Q1 FY25 (December quarter):
💳 Services +14% Y/Y to $26.3B.
📱 Products +2% Y/Y to $98.0B.
• Revenue +4% Y/Y to $124.3B ($0.3B beat).
• Operating margin 34% (+1pp Y/Y).
• EPS $2.40 ($0.06 beat).
Services Shine, China Lags
Apple posted record Q1 FY25 revenue, up 4% Y/Y to $124.3 billion ($270 million beat), with EPS rising 10% Y/Y $2.40 ($0.06 beat). The Services segment surged 14% to $26.3 billion, driving gross margin to 47%. While iPhone revenue dipped 1% to $69.1 billion and missed expectations, Mac (+16%) and iPad (+15%) outperformed. China sales fell 11% Y/Y due to inventory adjustments and competitive pressure.
Looking ahead, Apple guided for low- to mid-single-digit revenue growth in Q2 (despite 2.5% fx headwinds). CEO Tim Cook cited stronger iPhone 16 sales in markets where Apple Intelligence was available and teased an April expansion to new languages and regions. While concerns remain around China demand and delayed AI feature rollouts, Apple is riding on its ecosystem strength and growing paid subscriptions (1 billion+) to maintain momentum.