The holiday quarter has historically been Apple’s strongest, and the three-month period ending on December 28, 2024, was no exception. Apple posted record-breaking revenue of $124.3 billion, marking a 4% year-over-year increase. Net income also surged to $36.3 billion, with record sales across key markets such as the Americas, Europe, Japan, and the Rest of Asia Pacific.
Sales Growth in Services and Mac, but Decline in iPhone
Breaking down the performance by product category, Apple saw robust revenue from its Mac and iPad lineups. The Mac division brought in $8.9 billion, while the iPad generated $8.0 billion in revenue. However, it was Apple’s services segment—Apple Music, TV+, and iCloud—that proved to be the biggest growth driver, setting a new all-time high revenue record of $26.3 billion, According to a report from Newsroom.
In contrast, iPhone revenue slightly dropped, falling from $69.7 billion in Q1 2024 to $69.1 billion this quarter. Sales in China also declined by over $2 billion, raising concerns about Apple’s performance in one of its most crucial markets.
Apple Intelligence and Future Growth
Apple remains optimistic about growth opportunities in 2025, particularly with the expansion of Apple Intelligence, its AI-powered ecosystem. The company plans to roll out AI features to more languages and regions in April, expecting this move to drive further user engagement and revenue.
Despite sluggish iPhone sales, the press release highlighted an all-time high in active Apple devices across all categories and regions, reinforcing Apple’s strong ecosystem and user base growth.
