Apple(US:AAPL) Huaan Securities·2025-02-10 04:55Investment Rating - Investment Rating: Maintain "Buy" [1] Core Insights - The report highlights that Apple's iPhone sales fell short of expectations, particularly in the Greater China region, where Q1 FY25 iPhone shipments dropped significantly [4][5] - The overall revenue for FY25 Q1 reached $124.3 billion, a year-over-year increase of 4%, slightly above Bloomberg consensus estimates [4] - The report emphasizes the importance of the rollout of Apple intelligence and the upcoming iOS 18.4 update, which is expected to enhance system-level AI functionalities [4][5] Financial Performance Summary - FY25 Q1 performance: Revenue of $124.3 billion (yoy +4%), Operating profit of $42.8 billion (yoy +6%), GAAP net profit of $36.3 billion (yoy +7%) [4] - Service revenue reached $26.3 billion (yoy +14%), while product revenue was $97.96 billion (yoy +1.6%) [4] - iPhone revenue was $69.1 billion (yoy -0.8%), iPad revenue was $8.1 billion (yoy +15.2%), and Mac revenue was $9.0 billion (yoy +15.5%) [4] Regional Performance - Revenue in Greater China for FY25 Q1 was $18.5 billion (yoy -11.1%), significantly below expectations [4] - iPhone shipments in China for Q4 2024 were reported at 13.1 million units, a substantial year-over-year decline of 25% [4] Future Projections - Revenue projections for FY2025-FY2027 are estimated at $408.99 billion, $454.82 billion, and $479.91 billion, respectively, with year-over-year growth rates of 4.6%, 11.2%, and 5.5% [6] - Non-GAAP net profit projections for the same period are $110.78 billion, $126.21 billion, and $133.49 billion, with corresponding growth rates of 6.5%, 13.9%, and 5.8% [6]