Apple published its effects of the first quarter of the fiscal year on Thursday after the final bell, revealing that iPhone sales had lowered the quarter of vacations and that source of income in China, a vital region for the company, had decreased considerably.
Apple’s profit of $ 124. 3 billion per quarterly record and exceeded the consensus estimate of $ 124. 1 billion.
However, China’s $18.51 billion in revenue badly missed forecasts of $21.57 billion. China sales were down 11.1% for the quarter.
Apple’s iPhone revenue also lacked targets of $69. 14 billion opposed to the $71. 04 billion estimate. The benefit consistent with consistent with $2. 40 percent, over $2. 35 planned.
Apple’s stock initially fell in volatile after-hours trading shortly after the results, but turned positive after the company gave guidance on the current quarter. The stock is down nearly 5% so far in 2025.
CEO Tim Cook answered analysts’ questions at a convention call at 5 p. m. And.
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“We are tracking and we have nothing more to climb than that,” says Cook.
Under the last Trump administration, Apple can avoid being included in Trump’s rate in China.
“I do believe it will go mainstream,” Cook says. “I’m getting feedback from people using different features today. Keep in mind that on the iPhone side of our business, you either have to have an iPhone 15 Pro or iPhone 16 to use Apple Intelligence. As that base grows, the usage will continue to grow.””I know from my own personal experience, once you start using the features, you can’t imagine not using them anymore.”
Cook says that he receives many emails per day and that the summary of ia serves as “so important. ” In April, Apple will implement Apple’s intelligence in a total series of new languages, Cook said.
“The base is growing,” he says.
“There are many reasons to upgrade,” Cook explains.
Apple has strongly announced the characteristics of the IPhone 16 AI while seeking to convince other people to move from older phones. However, some of the characteristics that Apple announced last year have not yet been published.
Cook reiterates that iPhone sales are in the place where Apple’s intelligence is available.
Carcass stock in China has shrunk through the end of the quarter, which Cook said has driven the 11% share of the giant market.
“Part of the explanation of why our sales were a little higher than we had planned to be towards the end of the quarter, and we ended up a little thinner than we had planned,” Cook.
“It’s the world’s maximum competitive market,” says Cook.
Cook says the iPhone has more room to innovate and expand Apple products in the pipeline.
iPads had a “good amount” of new customers in fiscal Q1 driven, in part, by iPad Air, Cook adds.
Cook says that in general, “the innovation that stimulates power is one thing”, referring to Depseek.
From a capital expenditure standpoint, Apple has followed a “cautious” technique to spending, known as cook, and continues a hybrid AI model, which it says, serves the company.
Apple’s shares now excharge more than 3% after hours.
Apple does not take out the full novel like other companies, but give knowledge points.
Apple’s CFO said the company expects currency exchanges to be a “wind against”, which is expected to have a negative effect that have an effect of 2. 5 percentage problems on quarterly income. The facilities are expected to grow in two low digits.
The overall source of revenue expansion will be comparable to December’s expansion, with low-figure expansion.
Apple’s new CFO, Kevan Parekh, started in the role on January 1. He’s been with Apple since 2013.
Cook highlights Apple’s growing services revenue, including AppleTV+. Cook throws in a “Severance” shoutout, which he helped promote with a video spot.
Apple TV plus productions have earned more than 2,500 nominations and 538 wins, Cook says.
Cook highlights reaching 2.35 billion installed devices in December. He shouts out Apple Intelligence features that rolled out in fiscal Q1.
He teases a “Siri capable later. “
“Our minds go to everyone who starts the trail of recovery,” Cook explains.
“Los Angeles is a house for many members of our team,” he adds.
Cook says Apple is supporting those affected by the fires in the Los Angeles area.
Cook joins through new CFO, Kevan Parekh, for the fiscal call of the first quarter.
This is the first call of Parekh as a monetary director since his replacement for Luca Masteri previous this month. Apple announced Masterri’s transition out of the doors the role in August.
Jacob Bourne, an emarketer analyst, a corporate sister of Business Insider, said that “Apple’s ability to deliver a forged field marshal, exceeding expectations despite the winds against Macro, validates her multifaceted strategy. “
“While the company’s cautious technique for the deployment of AI has caused criticism, physically powerful expansion and ecosystem expansion offer a very important impulse for help relieving its continuous struggles for iPhone in China,” Bourne said.
“However, Apple will have to increase its display of Apple’s intelligence and be a bit more competitive in emerging spaces such as the progression of wise glasses to have an advantage of Van verify that it can balance its cautious technique with the hunger of the market for the market for the Innovation of AI.
Revenue in Gran China fell 11. 1% year after year in Apple’s first fiscal quarter. Declive factors in sales come with “changes in the channel inventory” and the lack of availability of Apple’s intelligence in the region, Cook told CNBC in an interview.
“During the December quarter, we saw that in markets where we had rolled out Apple intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence,” Cook said.
1st quarter
Product income: $ 97. 96 billion, + 1. 6% in Y / y, estimate of $ 98. 02 billion
Source: Bloomberg data
Goldman Sachs analysts wrote that while they expect iPhone shipments to decrease approximately 4% from the trimester of the previous year, the upper costs of the iPhone are expected to compensate for the deficit, resulting in an expansion of earnings year after year For Apple’s badge.
The bank is already focusing on Apple’s upcoming iPhones, which are expected to expand as new AI features are rolled out.
“We are encouraged through the potential expansion of the iPhone to increase in F2026 driven through new products for the iPhone 17/18 and the continued deployment of Apple’s intelligence to new markets with one more feature set,” Goldman Sachs said in a recent note.
A bright spot in the quarter should be Apple’s services business, with app store spending growth to reach an estimated 15% in the quarter with “ample runway for adoption of Apple’s services.”
“Concerns about Apple Intelligence’s limited have an effect on the call and the iPhone Festival in China will probably be replaced through a concentrate in the new list of Apple Intelligence functions revealed on WWDC 2025, the launch of new products Mac, iPad and iPhone is in spring 2025, and prospective for the new characteristics of the product for the iPhone 17/18, “said Goldman Sachs.
Goldman Sachs assesses Apple to “buy” with a target of $280.
Barclays analysts expect Apple’s forged sales and diversity of Mac products to offset weakness in its corporate iPhone.
Barclays also said its home chain controls recommend a lower-volume launch than the upcoming iPhone SE4 phone, which may weigh on the company’s direction for its fiscal moment.
“We think the March-Q guidance is the main event. We remain cautious given mixed iPhone data points recently, muted sell-through and more concerns on downward build revisions,” Barclays said.
The company said that Apple will sell 3 million of its iPhone Se4 to the anniversary in the quarter of March, than less of its initial expectations.
Barclays qualifies Apple with “weight of the same moment” with an objective of $ 183.
Analysts at JPMorgan said Wall Street will be less focused on Apple’s fiscal first-quarter results and instead be looking to the company’s guidance for clues about its iPhone sales.
The bank said in a recent note that the loss of percentage of the Apple iPhone market in China “would probably continue with the company already beyond its peak of the product cycle and with the subsidies of the local government customers to allow replacement of the smart phone low to low to medium phones high -end smartphones “.
The strong US dollar is also a headwind for Apple and will weigh down profits. JPMorgan observed that consumers have little appetite to pay a higher price for Apple iPhones outside of new product launches, giving the company limited flexibility in softening the blow from the strong dollar.
Despite those headwinds, JPMorgan said it expects Apple to make a premium valuation thanks to the iPhone’s cumulative replacement cycle and its rollout of new AI features.
“Apple remains one of the maximum ecosystems favored to participate in the adoption of the EDGE with its wide presence in wisphones, PCs and potentially wise devices of the Wise House in the future,” JPMorgan said.
JPMorgan assesses Apple to “outperform” and lowered its value, of course, to $260, as opposed to $265.
Wedbush analyst Dan Ives said in a recent note that fears about iPhone sales in China with low content in China are “too exaggerated. “
“Our recent Apple Iphone China checks combine with more Gentile of income and earnings of the first quarter of Wall Street.
“We also believe that Apple has a strong functionality in the front of the facilities, which is the track of $ 4. 5 billion of the portion assessment that we see in the next 12 to 18 months,” added Iives.
IVES said that the unpaved deployment of Apple’s AI is underestimated through investors. He hopes that approximately 20% of the world population will access the characteristics of AI on an Apple device in the coming years.
“What the bears continue to lose in Apple is that their gold -installed base of 1. 5 billion iPhones and 2. 3 billion iOS devices have no rival and will create a new expansion history aimed at the street taking into account the shares,” he said IVES. .
Wedbush rates Apple at “Outperform” with a $325 price target.
Apple’s profits effects will probably provide a recurring theme for their investors: weak iPhone sales in China will be compensated through the expansion of two -digit profits in the company’s business.
That’s according to Anurag Rana, senior industry analyst for the technology sector at Bloomberg Intelligence.
The low trends in customer spending in China, combined with a higher festival from Huawei, frog that the weakness of Apple’s sales will continue in the future.
But iPhone sales in America and Europe are expected to be a bright spot, according to Rana’s note.
“A double-digit sales boost in Services will likely be another bright spot, driven by increased App Store use and other ancillary services tied to the recently released iPhone 16 models,” Rana said.
Finally, Apple’s percent buyout program may be a bright spot for investors, estimating RANA percentage figures at $25 billion to $27 billion in the quarter.
First quarter
Income estimation product source: $ 98. 02 billion
Source: Bloomberg data
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