Apple (AAPL) reported fiscal first-quarter earnings that topped estimates as its services revenue rose, though iPhone sales fell short.
The iPhone maker’s revenue rose 4% year-over-year to a record $124.3 billion, roughly in-line with the analyst consensus from Visible Alpha. Earnings came in at $36.33 billion, an all-time high of $2.40 per share, compared to $33.92, or $2.28 per share, a year earlier and above expectations.
By segment, Apple’s services revenue grew 14% to $26.34 billion. Mac and iPad sales also rose by double-digit percentages, up over 15% to $8.99 billion and $8.09 billion, respectively. However, the company’s biggest source of revenue, iPhone sales, fell just under 1% to $69.14 billion, missing projections. It was the first full quarter since the iPhone 16 was released in September.
The results come amid concerns about falling sales in China, as Chinese smartphone makers like Vivo and Huawei have expanded their market share. The Greater China region was the only region in which Apple saw its sales fall in the first quarter from the year before.
Apple CEO Tim Cook said on the company’s earnings call that iPhone 16 sales have been stronger in markets where Apple Intelligence is available. In some markets like China, Apple Intelligence is not available yet due to regulatory hurdles.
Since its debut, the iPhone 16 lineup has outperformed the iPhone 15 line’s post-launch performance a year earlier, Cook said. Apple saw a record number of device upgrades in the quarter, Cook added, with the number of active Apple devices reaching an all-time high of 2.35 billion.
Looking ahead, Apple said it anticipates fiscal second-quarter revenue to grow by a percentage in the mid-to-low single digits, roughly in line with expectations, and gross margins to land between 46.5% and 47.5%, above the analyst consensus.
Shares of Apple climbed about 3% in extended trading Thursday following the company’s earnings call. The stock has gained over 27% over the last 12 months through Thursday’s close.
UPDATE—Jan. 30, 2025: This article has been updated since it was first published to include additional information and reflect more recent share prices.