During its earnings call , Apple ( AAPL , Financials ) revealed record sales of $124.3 billion for the first quarter of fiscal 2025, a 4% rise from the year before. Rising 10% to $2.40, earnings per share above experts' projected $2.35.

Emphasizing all-time high revenue in the Americas, Europe, and Asia-Pacific, Chief Executive Tim Cook attributed expansion to growing demand for the iPhone 16 series, rising acceptance of Apple Intelligence capabilities, and increasing services revenue. With paid memberships exceeding one billion, the company's services segmentwhich comprises the App Store and subscription productsgushed 14% year over year to $26.3 billion.

Demand for the A18-powered smartphones, which provide longer battery life and improved camera capabilities, helped iPhone revenue to exceed $69.1 billion. Demand for the newest M4-powered Mac series drove 16% year-over-year rise in Mac revenue to $9 billion. Strong sales of the iPad Mini and iPad Air explained 15% increase in iPad revenue.

Supported by a good product mix and operational effectiveness, Apple's gross margin for the quarter was 46.9%, at the high end of its projection, Chief Financial Officer Kevan Parekh said. Reported operating cash flow came at $29.9 billion.

With services revenue expected to rise in the low double digits, the business anticipates overall income for the second quarter to rise in the low-to mid-single digits year-over-year. Apple expects a 2.5% foreign currency headwind influencing outcomes. Operating costs are expected between $15.1 billion and $15.3 billion while gross margin is forecast between 46.5% and 47.5%.

Cook indicated that in April Apple Intelligence features would be expanded to other languages and areas, thereby promoting product adoption.

With sales of $124.3 billion against predictions of $124.03 billion, Apple beat Wall Street expectations. Product gross margin at 39.3% and services gross margin at 75% helped sequential improvement in gross margin. Revenue from wearables, homes, and accessories was at $11.7 billion, somewhat down year over year from challenging comps.

Including $23.3 billion in share repurchases, the corporation sent $30 billion back to its investors.

Analysts on the effect of Apple Intelligence on iPhone demand, cost cuts from DeepSeek improvements, and expansion in new countries concentrated on the earnings call Cook cited capabilities like writing tools and Genmoji to explain why markets with Apple Intelligence presence saw higher iPhone 16 sales. In India, where iPhone was the top-selling model for the quarter, he highlighted double-digit increase.