Apple has unveiled its financial results for the first quarter of fiscal year 2025: Total net revenue amounted to $124.30 billion, marking a 4% increase year-on-year; net profit reached $36.33 billion, up 7% from the previous year; diluted earnings per share stood at $2.40, a 10% year-on-year surge. Notably, revenue from Greater China was $18.513 billion, a decrease of 11% year-on-year (Apple's fiscal year does not align with the calendar year, spanning from October 2024 to September 2025).

Apple's first-quarter performance highlights that last year's Double 11 promotions and various sales initiatives on third-party platforms failed to significantly bolster Apple's revenue in China. Instead, a year-on-year decline was observed, indicating a waning attractiveness and competitiveness of Apple products in the Chinese market. The intensifying competition, led by Chinese phone manufacturers such as Huawei, who offer highly competitive products surpassing Apple in areas like AI applications, further underscores this trend. Additionally, Apple Intelligence has yet to penetrate the Chinese market.

Cook also noted that in markets where Apple Intelligence has been launched, the iPhone 16 series has indeed performed better year-on-year compared to markets without Apple Intelligence.

Commenting on Apple's performance in the Chinese market, Cook stated, "Our revenue in Greater China declined 11% year-on-year this quarter, with more than half of that decline attributed to changes in channel inventory, which persisted throughout the quarter. Furthermore, 'we have not yet introduced Apple Intelligence in the Chinese market. As previously mentioned, we have observed that our performance in markets where Apple Intelligence is available is superior to markets without it.'" Cook acknowledged that China is the most competitive market globally.

Cook further elaborated that in January this year, the Chinese government announced a series of economic stimulus policies and issued subsidies for electronic consumer products. Since these policies were announced in January, they did not impact our performance in the December quarter. While some provinces offered consumer subsidies during the December quarter, the national subsidy plan was officially announced around January 20th. This subsidy plan encompasses all Apple product categories, including smartphones, tablets, PCs, and smartwatches. It remains to be seen whether these economic stimulus policies will have a positive impact on our business.

Regarding DeepSeek, Cook said, "I believe innovation that drives efficiency improvements is beneficial. For Apple, I am confident that our seamless integration of chips and software will continue to deliver exceptional service to users. Much of our work is executed on devices and private clouds."

Although the Chinese market will witness a series of stimulus policies, and Apple's product line falls within the subsidy scope, the company still experienced an 11% year-on-year decline, despite various discounts offered during Double 11 promotions on multiple third-party platforms. This underscores that solely relying on stimulus measures for a robust sales outlook is an idealistic assumption. Additionally, products from Chinese phone manufacturers are also eligible for subsidies, with some manufacturers even adjusting their pricing to qualify, all in an effort to capitalize on these policies. Ultimately, user preference is paramount, and which manufacturer's products can captivate users is crucial.