Telecommunications Apple business grows despite iPhone decline

SDA

30.1.2025 - 23:25

Apple's Mac business performed significantly better than Wall Street expected. (archive image)
Apple's Mac business performed significantly better than Wall Street expected. (archive image)
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Apple traditionally does its biggest business in the Christmas quarter. The new iPhones did not generate growth this time - but interest in artificial intelligence (AI) gave the company confidence.

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According to Apple, the new AI functions boosted iPhone sales. In the countries where "Apple Intelligence" is already available, the new iPhone 16 has sold better, said CEO Tim Cook after presenting the latest quarterly figures. At the same time, there had been a record number of users replacing their previous iPhones with new ones.

Apple closed the traditionally lucrative Christmas quarter with a decline in the iPhone business. However, growth in Mac computers, iPads and the services business ensured that consolidated sales rose to a record high. Apple customers now have 2.35 billion different devices from the Group in use.

Stock market reacts positively

Cook's comments on the effect of "Apple Intelligence" also made the stock market more confident. In after-hours trading in the US, Apple shares turned around from a loss to a gain of around three percent. Apple has so far only launched the AI functions in the USA, Canada, Australia, New Zealand, South Africa and the UK. Other countries are to follow in April.

The functions of "Apple Intelligence" include creating summaries of emails or short messages and improving texts. Users can also generate their own emoji with text specifications and remove distracting objects from photos. Google, as the developer of the rival smartphone system Android, and manufacturers such as Samsung are also offering more and more AI functions in their devices.

Macs and iPads strong

The iPhone remains by far the most important product. However, the past quarter demonstrated how the Group is benefiting from a broad range of different device categories.

iPhone sales fell from 69.7 billion dollars in the same quarter of the previous year to 69.14 billion dollars. Analysts had expected an average of around 71 billion dollars.

The Mac business, on the other hand, performed significantly better than Wall Street had expected. Turnover rose from 7.8 to 8.99 billion dollars. Analysts had expected just under eight billion dollars. There was also a significant increase in iPad sales from seven to a good eight billion dollars. The service business with revenues from the App Store and Apple's subscription offers, among other things, grew from 23.1 billion dollars a year ago to 26.34 billion dollars.

Overall, Group sales increased by four percent to a record 124.3 billion dollars. At the bottom line, Apple increased its quarterly profit by seven percent to 36.3 billion US dollars.

Questions surrounding business in China

One trigger for the initial drop in the share price could have been the weakening of business in the China region in addition to the iPhone decline. Turnover there fell by eleven percent to 18.5 billion dollars and fell short of analysts' expectations.

Apple is facing more competition from Chinese smartphone providers in this huge market. However, Cook also said in a conference call with analysts that Apple is hoping for a tailwind from economic measures in China.