Apple exceeded analysts’ expectations in the first quarter of the 2025 fiscal year on Thursday. The company’s revenue increased by 4% to $124.3 billion, slightly higher than the projected $124.2 billion. Earnings per share were $2.40, beating the forecast of $2.35.
Following CEO Tim Cook’s announcement of the revenue, Apple’s shares surged by more than 8% in after-hours trading as the company is on track for revenue growth next year.
Investors expressed concerns about declining iPhone sales in China, the world’s largest smartphone market, with domestic competitors like HUAWEI gaining ground. Apple confirmed this on Thursday, reporting an 11.1% drop in iPhone sales in China, missing Wall Street’s revenue expectations.
During the earnings call, Cook mentioned Apple’s active device base of 2.35 billion.
Despite the mixed reviews, Cook hailed it as the company’s “best quarter” with a 4% profit increase. Cook highlighted the introduction of Apple Intelligence, which debuted for English-speaking iPhone users in late October. The AI feature has seen strong sales and impacted numbers positively, including in China.
Investors have closely monitored Apple’s progress in AI, which has been slower compared to competitors and has garnered a range of reviews. Despite initial anticipation, the technology has been criticized for inaccuracies and glitches.
During the earnings call, Cook assured analysts that AI technology would become mainstream. Apple Intelligence is currently exclusive to new devices in a limited number of countries, and adoption has been gradual. Cook emphasized the transformative nature of the feature once users experience it.
Apple’s earnings report came amidst a challenging week for high-tech stocks in the US. Following the presence of a Chinese AI company’s app on Apple’s App Store, several tech companies experienced declines. Despite initial setbacks, recoveries were observed in subsequent trading days.
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Apple seems to be shielded from the recent stock market turbulence, with its stock rising earlier in the week. Analysts believe Apple’s focus on integrating AI into its products enables cost efficiency compared to developing cutting-edge models.
Despite initial struggles in 2025, Apple’s stock had dropped by about 8% in the first three weeks of the year, primarily due to concerns about declining smartphone sales in China.
Apple Intelligence had faced glitches and generated inaccurate push notifications. In response to feedback, Apple ceased the feature earlier this month. A recent iOS update now explicitly states when notifications are AI-generated.
Source: www.theguardian.com
