{"id":47586,"date":"2025-05-02T14:15:09","date_gmt":"2025-05-02T18:15:09","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=47586"},"modified":"2025-05-02T14:15:09","modified_gmt":"2025-05-02T18:15:09","slug":"apples-q2-2025-results","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2025\/05\/02\/apples-q2-2025-results\/","title":{"rendered":"Apple’s Q2 2025 Results"},"content":{"rendered":"

Apple<\/a> (transcript<\/a>, MacRumors<\/a>):<\/p>\n

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The Company posted quarterly revenue of $95.4 billion, up 5 percent year over year, and quarterly diluted earnings per share of $1.65, up 8 percent year over year.<\/p>\n

[…]<\/p>\n

The board of directors has also authorized an additional program to repurchase up to $100 billion of the Company’s common stock.<\/p>\n<\/blockquote>\n\n

Jason Snell<\/a>:<\/p>\n

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Revenue was $95.4 billion, up 5% versus the year-ago quarter. Mac revenue was up 7%, iPad revenue up 15%, iPhone revenue up 2%, and Services revenue up 12%. The Wearables\/Home\/Accessories category was down 5%.<\/p>\n<\/blockquote>\n\n

Jason Snell<\/a>:<\/p>\n

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Things are weird in Apple-land. Legal judgments are piling up<\/a> in unexpectedly bad ways<\/a>. Tariffs<\/a> threaten large parts of Apple’s business. This year’s banner Apple Intelligence features got delayed indefinitely<\/a>.<\/p>\n

[…]<\/p>\n

Speaking of doldrums: iPhone revenue was up 2%, and that qualifies as good news, given that it was down one percent last quarter. But the truth is that iPhone revenue has been essentially flat for the last three years. Not since fiscal 2021 has there been multiple quarters of double-digit growth. To be sure, the iPhone is still a money machine—it’s generated $200 billion in revenue while spending the last year in the doldrums. But if you’re a growth-obsessed investor, it’s a little troubling.<\/p>\n<\/blockquote>\n\n

Benjamin Mayo<\/a>:<\/p>\n

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In fact, Apple recorded a new all-time high for gross margin on services this quarter, at 75.7%. That figure is based on costs of $6.46 billion on sales of $26.64 billion.<\/p>\n

[…]<\/p>\n

The Services business includes revenues from things like iCloud, Apple Music, Apple TV+, AppleCare, and more. However, a big chunk is also derived from Apple’s cut of App Store in-app purchases, which ranges from 15-30% on digital goods purchases and subscriptions.<\/p>\n<\/blockquote>\n\n

It also includes Google’s TAC payments for searches initiated in Safari.<\/p>\n\n

Jeff Johnson<\/a>:<\/p>\n

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Show me a retail store with a 76% gross margin.<\/p>\n

Otherwise, people can STFU about App Store being like a retail store.<\/p>\n<\/blockquote>\n\n

John Gruber<\/a>:<\/p>\n

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No one even asked about the material impact of Apple being required to immediately change the App Store guidelines (in the US) to allow unfettered link-outs to the default web browser to make purchases and sign up for subscriptions. You’d think that would be a question.<\/p>\n<\/blockquote>\n\n

Previously:<\/p>\n