Apple’s shares recently rose by 3% despite a decline in iPhone sales, thanks to a significant boost in services revenue.
The company’s overall revenue for the first fiscal quarter of 2025 reported an increase of 4% to $124.3 billion, surpassing Wall Street’s expectations.
However, iPhone sales fell short of estimates, totalling $69.14 billion compared to the expected $71.03 billion.
The services division, which includes subscriptions, warranties, and licencing deals, reported a revenue of $26.34 billion, a 14% increase from the same period last year. This growth in services revenue helped offset the decline in iPhone sales and contributed to the positive market response.
Apple CEO Tim Cook reportedly highlighted that iPhone sales were stronger in countries where Apple Intelligence is available.
The company reportedly plans to release additional languages for Apple Intelligence in April 2025, including a version in simplified Chinese.