MacDailyNews presents live notes from Apple’s Q125 Conference Call with analysts starting at 2pm PT / 5pm ET today, January 30, 2025.
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Apple’s live conference call webcast will begin at 2pm PT / 5pm ET here.
Apple today posted quarterly revenue of $124.3 billion, up 4 percent year over year, and quarterly diluted earnings per share of $2.40, up 10 percent year over year.
For the quarter, analysts’ consensus estimates (per FactSet) called for Apple to report revenue of $124.3 billion and EPS of $2.35, both of which Apple beat.
Live notes in reverse chronological order:
• That went well for Apple shareholders! 😄
• AAPL After hours: +7.61 (+3.20%) to $245.20 @ 5:54:39 PM EST
• End of conference call.
• Cook: Lots of units were sold during COVID, so refreshes are are a huge opportunity coming up
• Cook: It’s different for different users; early adopters and users who use prodcuts for a long period of time
• Q: Average useful life of Apple devices in the wild?
• Cook: Certainly one of those is Sir and that will be coming over the next several months.
• Q: Apple Intelligence killer feature?
• Cook: “We are monitoring the situation and don’t have anything more to add.”
• Q: Potential tariff impact from President Trump?
• Parekh: Apple wil continue to have a disciplined pricing strategy
• Q: Wider price ranges drive sales?
• Cook: In April we roll out a whole series of new languages, so that should drive usage growth
• Cook: Once you start using Apple Intelligence, you can’t imagine not using them anymore
• Cook: I do believe Apple Intelligence will go mainstream; iPhone 15 Pro and later is a base than will grow
• Q: What grows Apple Intelligence?
• 46.5-47.5% gross margin overall
• This quarter was driven by favorable mix; in general, products gross margin depends on mix
• Q: How much more can product gross margins grow?
• Cook: It’s a combination of compelling M4-based product that drive upgrades and switchers, both at double-digit levels
• Q: Very strong Mac sales driven by replacement cycle?
• In general we saw nice momentum across Services with a 75% margin
• Our next AI language rollouts withh affect fiscal Q3, not fiscal Q2
• Cook: The iPhone 16 is outperforming the iPhone 15
• Cook: Markets where AI rolled out performed better than market that do not yet have Apple Intelligence features
• Q: Apple Intelligence affecting iPhone in March quarter? Margins in the future?
• Cook: Manufacturing in India is both for the domestic market and export
• Q: Supply chain growth in India?
• Cook: Mac up 16%, iPad up 15% for the quarter; Mac driven by strong uptake on new products and continued success of MacBook Air; “We believe we have the best AI PC out there.… We’re incredibly pleased with both Mac and iPad going forward.”
• Q: Sustainability in Mac and iPad growth?
• Parekh: Strength across the portfolio in all geographic regions; over 1 billion paid subscriptions worldwide
• Q: Services growth?
• Cook: We ended a little leaner than we had expected
• Cook: iPhone channel inventory reduced from beginning to end of quarter and that was over half of the reducing in quarterly results
• Q: iPhone channel inventory in China?
• There is a huge market in India and Apple has plenty of upside there and that’s just one of the emerging markets
• Cook: We have great results in emerging markets; particularly keen on India
• Q: Emerging market growth durable?
• Over half of iPad sales in quarter were to customers new to iPad
• Cook: iPad overall grew 15% for the quarter and more driven by iPad and iPad Air than by iPad Pro
• M4 iPad Pro thin form factor, did it help sales?
• iPhone 16 outperforms the iPhone 15 to date; so it’s a compelling upgrade
• Cook: We did set an all-time record for iPhone upgraders; install bas hit a new all-time high as well
• Q: Record upgrades to iPhone user base?
• Cook: I think there is a lot more to come and I could not feel more optimistic in out product pipeline; there is a lot of innovation left in the smartphone.
• Q: Do you feel that there is room for form factor innovation in iPhone in the future?
• From a CapEx POV, Apple takes a prudent view and continues to pursue a hybrid model
• Cook: Innovation that drive efficiency is a good thing
• Q: DeepSeek drive AI costs down; does that help Apple?
• China had a fiscal stimulus, but it did not affect this quarter as it was just released recently
• Apple is working on rolling out Apple Intelligence around the world
• Cook: Greater China revenue down 11% YoY and over half of that decline was driven by change of channel inventory
• Q: China headwinds?
• We have just early indications on Apple Intelligence so far
• Cook: We see all AI features being used
• Cook: We did see that the markets with Apple Intelligence, the YoY iPhone performance was stronger than those without
• Q: Apple Intelligence impacting iPhone demand?
• The dividend is payable on February 13, 2025, to shareholders of record as of the close of business on February 10, 2025
• Apple’s board of directors has declared a cash dividend of $0.25 per share of the company’s common stock
• Service to grow low double-digits
• Outlook for Q225: revenue to grow low to mid-singl digits
• Returns over $30 billion to shareholders during the quarter in dividends and buybacks
• $97 billion total debt
• $141 billion in cash
• Vison Pro contineus to see more use
• Enterprise continues to expand use of Apple products
• Over 1 billion subscriptions across Apple platforms
• Transacting and paid accounts both hit new all-time highs
• Services – all-time revenue record of $26.340 billion (vs. $23.117 billion YoY)
• 94% Apple Watch customer satisfaction
• Wearables, Home and Accessories – $11.747 billion (vs. $11.953 billion YoY)
• 96% iPad customer satisfaction
• iPad – $8.088 billion (vs. $7.023 billion YoY)
• 94% Mac customer satisfaction
• Mac – $8.987 billion (vs. $7.780 billion YoY); incredible broad-based growth
• 96% iPhone customer satisfaction
• iPhone – $69.138 billion (vs. $69.702 billion YoY); Apple grew in the majority of markets the company tracks
• Earnings per share of $2.40 was also a new quarterly record, up 10 percent year over year
• 46.9% gross margin, up 70 basis point sequentially
• Apple now has and install base of over 2.35 billion active devices
• Kevan Parekh: Proud to report all-time revenue record of $124.3 billion
• Cook: Apple technology is enriching our customers’ lives
• Apple Retail Store footprint continued to grow during the quarter
• June 27th: “F1” movie premieres starring Brad Pitt
• Apple TV+ debuted the second season of “Severance” this month
• Services – all-time revenue record of $26.340 billion (vs. $23.117 billion YoY)
• Cook promotes Apple Vision Pro
• Cook talks about Apple Watch Series 10 benefits
• Wearables, Home and Accessories – $11.747 billion (vs. $11.953 billion YoY)
• iPad – $8.088 billion (vs. $7.023 billion YoY)
• Cook: “Every product in the Mac lineup offers something extraordinary”
• Mac – $8.987 billion (vs. $7.780 billion YoY)
• Cook touts iPhone 16 lineup
• iPhone – $69.138 billion (vs. $69.702 billion YoY)
• “An even more capable Siri” is coming in the future (unspecified)
• In April, Apple Intelligence will come to many more languages
• Cook promotes those Apple Intelligence features that have been released so far
• Apple now has over 2.35 billion active devices install base
• Services set new all-time quarterly record
• Earnings per share of $2.40 was also a new quarterly record, up 10 percent year over year
• Apple today reports best quarter ever, with revenue of $124.3 billion, up 4 percent YoY
• Cook acknowledges the devastating fires that took place in Los Angels earlier this month; Apple is contributing to relief efforts.
• Conference call begins.
• AAPL After hours: -4.00 (-1.68%) to $233.59 @ 4:58:54 PM EST
• AAPL After hours: -3.33 (-1.40%) to $234.26 @ 4:57:30 PM EST
• AAPL After hours: -1.69 (-0.71%) to $235.90 @ 4:56:03 PM EST
• AAPL After hours: -1.14 (-0.48%) to $236.45 @ 4:54:11 PM EST
