Apple’s holiday quarter has always been a stronghold for earnings, and the final three months of 2024 set a new benchmark. The Cupertino giant reported all-time high revenues of $124.3 billion, marking a 4% year-over-year increase. Net income also surged to $36.3 billion, driven by robust sales across key global markets, including the Americas, Europe, Japan, and the Rest of Asia Pacific.

Services Fuel Growth as iPhone Sales Lag

While Apple’s Mac lineup brought in $8.9 billion and iPads generated $8 billion, the real powerhouse was Apple’s services division. Apple Music, TV+, iCloud, and other digital services achieved a staggering $26.3 billion in revenue, solidifying their role as a core driver of growth.

However, iPhone sales dipped slightly to $69.1 billion, compared to $69.7 billion in the same quarter of 2023. A $2 billion drop in net sales from China played a key role in the decline, signaling potential challenges for Apple’s flagship product in one of its most critical markets.

Apple Intelligence Expected to Lead 2025 Growth

Despite the iPhone slowdown, Apple remains optimistic about 2025, with Apple Intelligence set to expand into more languages and regions starting in April. The company anticipates that its AI-driven features will become a key growth engine across its ecosystem.

In addition, Apple reported a record number of active devices across all product categories and geographic regions, demonstrating the increasing strength of its ecosystem.

While iPhone sales may have underperformed, Apple’s diverse revenue streams—especially in services—continue to push the company to new financial heights.

Read the full report on GSMArena.