Apple reported its latest quarterly earnings results on February 1, 2025, showcasing record-breaking sales for the October-December 2024 period, marking the first full quarter during which the new iPhone 16 models were available. The technology giant drew impressive revenue of $69.1 billion from iPhone sales during this span. Although this was down slightly from $69.7 billion recorded during the same period ending December 2023, the overall picture was rosier.
CEO Tim Cook emphasized the positive results during the investor call, stating, "We’ve never seen a higher level of upgraders before. The install base hit a new all-time high as well." This shift indicated strong demand for upgrades, showcasing the iPhone’s increasing appeal. Cook noted, "If you look at the 16 compared to the 15 from launch... the 16 outperformed the 15," adding evidence to the compelling reasons prompting customers to upgrade.
Beyond iPhones, Apple also saw growth across various product categories during the holiday season. Sales of Mac computers increased to nearly $9 billion, compared to $7.8 billion the previous year. The iPad also showed promising results, with revenues climbing up to $8.1 billion from $7 billion. Conversely, home and accessory devices experienced a dip, generating $11.7 billion, down from $12 billion the year prior.
Services revenue, which encompasses device warranties and the popular streaming service Apple TV+, also continued to soar. Reports indicate services brought in $26.3 billion, reflecting growth from $23.1 billion over the same span last year. This segment has become increasingly integral to Apple’s overall strategy, providing consistent revenue streams amid fluctuational hardware sales.
Wall Street analysts initially forecasted earnings per share (EPS) of $2.34 on total revenue of $124 billion for the quarter. Much to their surprise, Apple reported diluted EPS at $2.40, totaling $36.3 billion net income, which represented a ten percent surge from the comparative quarter ending October-December 2023. The total revenue clocked at $124.3 billion, marking a 4% increase year-over-year.
Tim Cook expressed enthusiasm about the results, stating, "Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago." He highlighted the successful product launches and the introduction of Apple Intelligence, which promises to offer users enhanced personalized experiences. Cook stated, "Through the power of Apple silicon, we’re unlocking new possibilities for our users with Apple Intelligence. And we’re excited to see it available in even more languages this April."
Accentuated by strong operating margins, Apple CFO Kevan Parekh added, "Our record revenue and strong operating margins drove EPS to a new all-time record with double-digit growth and allowed us to return over $30 billion to shareholders." His remarks underscored the success of Apple’s fiscal strategies and the satisfaction of their investor base.
Apple’s performance this holiday quarter not only showcased the company’s enduring strength but also set the stage for another prosperous year. By fostering consumer loyalty and focusing on meaningful innovations, Apple aims to sustain its growth momentum and explore new markets and technologies, ensuring its leading position within the global tech industry. With Apple Intelligence on the horizon and its extensive loyal customer base, expectations remain high for future financial performance as the company continues to navigate market challenges and capitalize on consumer trends.