Apple Holiday Quarter Earnings Hit Record Breaking Highs

Apple’s latest quarterly earnings report, released on February 1, 2025, showed impressive sales and growth for the October-December 2024 period, the first full quarter after the release of the new iPhone 16 models. Apple earned $69.1 billion from iPhone sales, slightly down from $69.7 billion during the same period in 2023, but the overall results were positive.

CEO Tim Cook celebrated the strong performance during the investor call, saying, “We’ve never seen a higher level of upgraders before. The install base hit a new all-time high as well.” This shows that more customers are upgrading their phones, with the iPhone 16 performing better than the previous iPhone 15. Cook added, “If you look at the 16 compared to the 15 from launch... the 16 outperformed the 15,” highlighting how the new model was more appealing to consumers.

Apple also experienced growth across other product categories. Mac computers saw a boost in sales, reaching nearly $9 billion, compared to $7.8 billion the previous year. iPad sales were also strong, with revenues rising to $8.1 billion, up from $7 billion. However, sales of home and accessory devices dropped slightly, bringing in $11.7 billion, down from $12 billion in the same period last year.

The company’s services revenue continued to grow, reaching $26.3 billion, up from $23.1 billion in 2023. This includes earnings from device warranties, the Apple TV+ streaming service, and other services. Apple has been focusing on its services segment, which has become a steady source of income, helping the company weather fluctuations in hardware sales.

Wall Street analysts had expected Apple to report earnings of $2.34 per share with total revenue of $124 billion for the quarter. Apple surprised analysts by reporting earnings of $2.40 per share, totaling $124.3 billion in revenue, a 4% increase compared to the previous year. The company’s net income was $36.3 billion, marking a 10% rise from the previous year’s holiday quarter.

Tim Cook expressed excitement about the company’s success, saying, “Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago.” He also highlighted the launch of Apple Intelligence, a new feature aimed at providing users with personalized experiences. Cook added, “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.”

Apple CFO Kevan Parekh emphasized the company’s strong performance, noting, “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.” This highlights how Apple’s financial strategies are paying off and pleasing investors.

Apple’s performance in this holiday quarter shows the company’s continued strength in the market. With loyal customers and innovations like Apple Intelligence on the horizon, Apple is well-positioned to maintain its growth and success in the coming year.