Services revenue grew 14% year-over-year, reaching $26.34 billion. Management attributes this growth to higher net sales from advertising, the App Store, and cloud services.

Europe net sales increased 11% year-over-year, and Japan net sales increased 16%. However, Greater China net sales decreased 11% due to lower iPhone sales.

The company announced product updates during the quarter, which can significantly impact net sales, cost of sales, and operating expenses.

The effective tax rate decreased from 15.9% to 14.7% due primarily to a lower effective tax rate on foreign earnings, tax benefits from share-based compensation, the impact of foreign currency loss regulations, and the tax impact from foreign currency revaluations related to the State Aid Decision.

The Company repurchased $23.3 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion during the quarter.

The company states its intention to increase its dividend on an annual basis, subject to declaration by the Board of Directors.

The company states that compliance with these laws and regulations is onerous and expensive, and that new and changing laws can adversely affect the Company's business.

The company notes that the technology industry is subject to intense scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions and penalties.

The company is subject to antitrust investigations and litigation in various jurisdictions around the world, which can result in legal proceedings and claims against the company that could have a materially adverse impact.

Greater China net sales decreased during the first quarter of 2025 compared to the same quarter in 2024 due to lower net sales of iPhone, indicating increased competition or shifting consumer preferences in that region.

The company is subject to investigations in Europe and other jurisdictions relating to App Store terms and conditions which could lead to significant fines and changes to business practices.

The company earns revenue from licensing arrangements with Google LLC and other companies, and certain of these arrangements are currently subject to government investigations and legal proceedings.

As of December 28, 2024, the Company had $2.0 billion of commercial paper outstanding, compared to $10.0 billion as of September 28, 2024, indicating improved short-term debt management.

As of December 28, 2024, the Company had manufacturing purchase obligations of $39.8 billion, which were payable within 12 months, reflecting significant reliance on outsourcing partners.

During the first quarter of 2025, the Company paid €11.0 billion or $11.9 billion to Ireland in connection with the State Aid Decision, impacting cash flow.

Research and development expenses increased from $7.696 billion to $8.268 billion, driven primarily by increases in headcount-related expenses and infrastructure-related costs, reflecting ongoing investment in innovation.

The Company has implemented changes to iOS, iPadOS, the App Store and Safari in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps.

Risks and costs related to new and changing laws, regulations, executive orders, directives, and enforcement priorities may increase as the Company expands the use of technologies, such as machine learning and artificial intelligence features.

The Company repurchased $23.3 billion of its common stock during the quarter, demonstrating a continued commitment to returning capital to shareholders.

The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors, signaling confidence in future cash flow generation.

Payments for acquisition of property, plant and equipment were $2.940 billion, indicating continued investment in infrastructure and production capabilities.

The 10-Q filing does not explicitly detail any new or updated ESG initiatives. The absence of specific information makes it difficult to assess progress or changes in this area.

The Company periodically provides certain information for investors on its corporate website, www.apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, information on environmental, social and governance matters.

The Company's global operations are subject to complex and changing laws and regulations on subjects including environmental, health and safety, including electronic waste, recycling, product design and climate change.

Macroeconomic conditions, including inflation, interest rates and currency fluctuations, have directly and indirectly impacted, and could in the future materially impact, the Company's results of operations and financial condition.

The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Americas net sales, while the strength in foreign currencies relative to the U.S. dollar had a net favorable year-over-year impact on Europe net sales.

The Company has implemented changes to iOS, iPadOS, the App Store and Safari in the EU as it seeks to comply with the DMA, including new business terms and alternative fee structures for iOS and iPadOS apps.