By Apple announced a 4% year-over-year increase in its first-quarter revenue, driven by its high-performing Services division, which grew 14% and reached $26.34 billion. However, iPhone sales underperformed, and China sales dipped 11.1%, marking significant challenges for the company.
Q1 Financial Highlights
- EPS: $2.40 (vs. $2.35 estimated)
- Revenue: $124.3 billion
- Gross Margin: 46.9% (a record high)
- Mac Revenue: $8.99 billion (15% growth)
- iPad Revenue: $8.09 billion (15% growth)
CEO Tim Cook attributed the decline in China sales to delayed rollout of the Apple Intelligence AI suite and changes in inventory channels. He highlighted the 2.35 billion active devices globally, emphasizing the growing Apple ecosystem.
Despite setbacks, the company forecasts modest revenue growth for the March quarter, buoyed by its strong subscription-based Services segment and product innovations.