Apple Reports Q1 2025 Financial Results

Apple's Anhui, China store. Source: Apple.

Apple’s Anhui, China store. Source: Apple.

Last quarter, Apple reported revenue of $94.9 billion, which was a 6% year-over-year gain.

Today, first-quarter 2025 earnings are out and Apple reported record revenue of $124.3 billion, a 4% year-over-year gain. The diluted earnings per share was $2.40 a 10% year-over-year gain.

Tim Cook had this to say:

Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up 4 percent from a year ago. We were thrilled to bring customers our best-ever lineup of products and services during the holiday season. Through the power of Apple silicon, we’re unlocking new possibilities for our users with Apple Intelligence, which makes apps and experiences even better and more personal. And we’re excited that Apple Intelligence will be available in even more languages this April.

Going into today’s earnings call, Apple’s stock was downgraded by multiple analysts. Factors cited in the downgrades included weak sales in China, an expectation that Apple wouldn’t meet earnings expectations, and the the lack of any boost in iPhone sales from Apple Intelligence.

It’s possible that some of the most powerful Apple Intelligence features that have yet to debut will drive future sales of iPhones and other devices even further than last quarter. That’s not a bet I’d necessarily take, but irrespective of hardware sale accelleration, the volatility among the companies behind the leading artificial intelligence models may insure to Apple’s benefit as investors move their investments into stocks that are perceived as safer.

The Latest from AppStories and NPC: Next Portable Console

Enjoy the latest episodes from MacStories’ family of podcasts:

AppStories

This week, for episode 420 Federico and John are joined by Matt Birchler, co-host of Comfort Zone and many other projects to talk about web apps, email, AI, and more.

On AppStories+, Matt, John, and Federico confess their tech secrets.

Sponsored by:

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NPC: Next Portable Console

It’s a packed episode with a post Switch 2 reveal vibe check and more on iPhone game controller innovation, plus John’s early impressions of the Ayn Odin2 Portal, Brendon’s review of the Miyoo Flip, and Federico’s long 2DS/3DS emulation journey.

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Game Tracker: A Powerful App to Track, Organize, and Customize Your Videogame Library

Game Tracker is a new videogame tracking app for iPhone, iPad, and Mac from Simone Montalto, who is probably best known to MacStories readers for developing the excellent Book Tracker. In fact, Montalto has created an entire suite of tracking apps that also includes Movie Tracker, Music Tracker, and Habit Tracker. That experience with various tracking apps shows with Game Tracker, which does a fantastic job of tailoring to the particularities of videogames and leveraging metadata to allow users to make the app their own.

Let’s take a closer look.

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Bookshop.org Now Supports Local Booksellers with eBook Sales→

Bookshop.org launched in 2020 as a way to sell books online while still supporting local bookstores, which have become a rarity in the U.S. The company has seen success selling physical books online. As Boone Ashworth explains at Wired:

For physical books, Bookshop lets buyers direct 30 percent of the proceeds of a sale to their favorite participating bookstore. An additional 10 percent of those sales, plus the sales of books that are not earmarked for a specific store, gets split up and distributed to every store on Bookshop’s platform.

Now, Bookshop has added eBooks that can be purchased online and read in the company’s new Bookshop.org app, available for iPhone, iPad, and Android devices. Ashworth breaks down how these sales work:

Ebook sales through Bookshop, however, will see 100 percent of the proceeds going to the store that sells them through the platform. If a user buys an ebook directly from Bookshop without naming a bookstore they want to support, then a third of that profit will go into the pool of funds that gets divided between stores. The rest will go to pay for Bookshop.org’s engineers and server costs.

Giving local bookstores the ability to sell eBooks fills a big hole for those businesses. Bookshop CEO Andy Hunter shared the company’s motivation for offering eBooks with Wired:

“It’s crazy that bookstores can’t sell ebooks to their customers right now,” Hunter says. He says he wants this program to continue his company’s mission of propping up local bookstores, but he also hopes this move will help take Amazon down a peg as well.

I’ve tried Bookshop’s app briefly with some book previews, and it works well. The settings options aren’t as extensive as in other eBook readers, but the basics – like text size, pagination versus scrolling, a couple of font options, and light, dark, and paper themes – are all there. The design makes browsing your library of books or finding something new to read easy, too. It may not be enough for some readers, but this is a 1.0 release, so I’m optimistic additional options will be offered with time.

It’s great to see Bookshop offering eBooks. We have an excellent bookstore here in Davidson that I love to browse, but more often than not, I prefer an eBook over the paper version, so it’s nice to have that as an option now.

The Bookshop.org app is available on the App Store as a free download. eBooks must be purchased online and synced with the app.

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Sotheby’s Is Auctioning Custom iPods from the Late Karl Lagerfeld’s Massive Collection→

Behold, the BlingPod. Source: [Sotheby's](https://www.sothebys.com/en/buy/auction/2025/karl-karl-lagerfelds-estate-v-le-studio-pf2553/a-set-comprising-an-ipod-classic-apple-and-a-micro)

Behold, the BlingPod. Source: Sotheby’s

Sotheby’s is auctioning the estate of renowned designer Karl Lagerfeld. The auction house, which is auctioning the estate’s assets in multiple lots, includes several collections of classic iPods and custom iPods, like the ultra-blinged-out one above. The estate’s collection also includes these first-generation iPod Nanos that Parker Ortolani posted on Mastodon:

Source: [Sotheby's](https://www.sothebys.com/en/buy/auction/2025/karl-karl-lagerfelds-estate-v-le-studio-pf2553)

Source: Sotheby’s

Compared to Lagerfeld’s full collection, though, Sotheby’s selection is a drop in the bucket. It’s estimated that the designer owned over 500 iPods when he passed away. According to graphic novelist Warren Ellis’s website:

Lagerfeld famously had an “iPod nanny” to digitise his collection for the iPods and to add new music to new devices. This is how he ended up with over 300 of them – he treated them like cassette tapes.

Source: [Sotheby's](https://www.sothebys.com/en/buy/auction/2025/karl-karl-lagerfelds-estate-v-le-studio-pf2553).

Source: Sotheby’s.

I’m impressed with Lagerfeld’s commitment to the iPod long after all but the Touch was discontinued. There’s a lot to be said for single-purpose devices like the iPod. I’d love to see Apple bring the iPod back one day, even if it were just a limited run. But if they do, I hope they get weird with it and take inspiration from some of these great custom iPods from Lagerfeld’s collection.

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iOS and iPadOS 18.3 Tweak Apple Intelligence and Add a Few Features

Starting them young. Source: Apple.

Starting them young. Source: Apple.

The drip, drip, drip of Apple Intelligence continues with iOS and iPadOS 18.3. There are still some big-ticket features announced at WWDC 2024 that are yet to come, but with today’s release, Apple keeps ticking items off its list.

The biggest change is one that is largely hidden from view. Starting with iOS and iPadOS 18.3, Apple Intelligence is turned on by default. That should result in greater adoption of the features, and it’s a good indicator that Apple is confident LLM hallucinations won’t come back to bite the company in its reputation. We’ll see about that last bit, but given the size of the iPhone market, Apple’s guardrails have held up reasonably well so far.

That said, Apple is walking back one feature a little. Notification summaries will no longer be applied to news apps, after some high-profile confabulations. Given that news apps typically send headlines, which are inherently summary in nature, I don’t think that’s a great loss, although the change is reportedly temporary. However, one change to notifications is not temporary: starting with iOS and iPadOS 18.3, summarized notifications appear in italics to help distinguish them from other notifications.

Visual Intelligence has been updated in iOS 18.3 as well. Accessed by pressing and holding the iPhone’s Camera Control, Visual Intelligence can now add events to your calendar, identify animals and plants, and get information about places around you, such as a store or restaurant’s hours.

The latest update also adds back a Calculator feature. When you tap the equals sign repeatedly, the Calculator app will apply the last-used operation each time.

Finally, Apple introduced its latest Black Unity Collection earlier today. The iPhone and iPad wallpapers are part of iOS and iPadOS 18.3, and the new Unity Rhythm watch face is included with watchOS 11.3.

DeepSeek Tops the App Store Charts and Sends AI Stocks on a Wild Ride

DeepSeek's newfound popularity has made it impossible to log in as of the publication of this story.

DeepSeek’s newfound popularity has made it impossible to log in as of the publication of this story.

And just like that, ChatGPT has been dethroned from its perch at the top of the App Store’s free app list, replaced by DeepSeek, another AI app. What’s interesting is that DeepSeek, which was developed by a Chinese startup, was reportedly created at a fraction of the cost of ChatGPT and other large language models developed in the US, which has tech stocks in turmoil.

Last week, DeepSeek revealed its latest LLM, which matches or outperforms OpenAI’s o1 model in some tests. That’s nothing new. AI companies have been one-upping each other for months. What’s different is that DeepSeek was reportedly built with a fraction of the hardware and at a fraction of the cost of OpenAI’s o1 and models like Anthropic’s Claude.

DeepSeek is also open source, potentially undermining the financial viability of U.S. and other for-profit companies that have spent hundreds of millions of dollars developing models that require a paid subscription. And, because it’s free, DeepSeek rocketed to the top of the App Store’s free app list, passing OpenAI’s ChatGPT, which has been at or near the top of the list for months.

That has caused a stir in Silicon Valley. As VentureBeat’s Carl Franzen puts it:

The open-source availability of DeepSeek-R1, its high performance, and the fact that it seemingly “came out of nowhere” to challenge the former leader of generative AI, has sent shockwaves throughout Silicon Valley and far beyond, based on my conversations with and readings of various engineers, thinkers and leaders. If not “everyone” is freaking out about it as my hyperbolic headline suggests, it’s certainly the talk of the town in tech and business circles.

Now, as DeepSeek is starting to look like the real deal, the stock market is causing competitors’ stocks to drop, including NVIDIA’s, which, according to the Financial Times, fell 13% at the opening of the New York Stock Exchange.

If there’s one thing that has been a truism of the AI industry over the past couple of years, it’s that it moves very fast. Today’s leaders are tomorrow’s laggards. Will DeepSeek dethrone the U.S. AI companies? It’s far too early to know, but it certainly is beginning to look like there’s a new horse in the race.

Apple Announces the 2025 Black Unity Collection

Source: Apple.

Source: Apple.

To honor Black History Month, which starts in February, Apple has released a new Black Unity Collection. Similar to 2024’s collection, the 2025 edition includes a Sport Loop band, iPhone and iPad wallpapers, and an Apple Watch face.

According to Apple’s press release:

Black creatives and allies at Apple collaborated on the design of the new collection. The collection, Unity Rhythm, weaves together the colors of the Pan-African flag: black, green, and red. The Black Unity Sport Loop is woven in a custom pattern of raised and recessed loops that creates a lenticular effect, revealing green on one side of each loop, and red on the other. When the band is worn, the colors appear dynamic, shifting from green to red as a user moves their wrist, and the color yellow appears in the transition, as if by magic.

The wallpapers spell the word “Unity,” which matches the pattern on the Watch face and colors of the Watch band. The Unity Rhythm watch face also includes a rhythmic chime on the hour and half-hour.

Source: Apple.

Source: Apple.

Apple is also supporting several organizations with grants, including the Ellis Marsalis Center for Music in New Orleans, Battersea Arts Centre in London, Music Forward Foundation in Los Angeles, Art Gallery of New South Wales in Sydney, and The National Museum of African American Music in Nashville, Tennessee.

The Apple Watch Black Unity Sport Loop is available to order online today and will be in stores this week for $49. The Unity Rhythm watch face and wallpapers will be available in a future software update.

Introducing Our Updated iPad Hub→

We’ve updated MacStories’ iPad hub. You may not have noticed before, but it’s linked right there in the masthead, and it’s an amazing resource. The iPad hub collects over a decade of Federico’s coverage of years of iPad hardware and iPadOS. It’s a fantastic historical resource and the best place to find his latest coverage.

Federico has been using and writing about the iPad since its beginning. His many hardware reviews benefit from that in-depth knowledge and his experiments in modularity and creating a hybrid laptop-tablet are legendary.

On the iPad hub, you’ll find:

If you love the iPad as much as we do, check out our iPad hub. It’s a fantastic resource and a fun trip through Apple’s hardware history.

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