Apple revenue
Tech giant Apple Inc. reported robust third-quarter earnings on Thursday, surpassing Wall Street’s expectations for both profit and revenue, as the company’s flagship iPhone sales surged 13% year-over-year. The impressive performance marks Apple’s strongest quarterly revenue growth since December 2021, highlighting renewed consumer demand and strategic gains across key markets.
For the quarter ending June 28, 2025, Apple posted earnings per share of $1.57, exceeding the estimated $1.43, and generated $94.04 billion in total revenue — significantly above the projected $89.53 billion.
Apple shares climbed in after-hours trading following the earnings release and rose further after CEO Tim Cook and CFO Luca Maestri provided upbeat forward-looking guidance during an earnings call with analysts.
By the Numbers: Key Q3 Performance Metrics
| Metric | Reported | Expected |
|---|---|---|
| Earnings per Share | $1.57 | $1.43 |
| Total Revenue | $94.04B | $89.53B |
| iPhone Revenue | $44.58B | $40.22B |
| Mac Revenue | $8.05B | $7.26B |
| iPad Revenue | $6.58B | $7.24B |
| Services Revenue | $27.42B | $26.80B |
| Other Products | $7.40B | $7.82B |
| Gross Margin | 46.5% | 45.9% |
iPhone, Mac, and Services Drive Growth
Apple’s iconic iPhone remains its most profitable segment, with revenue rising 13% to $44.58 billion compared to the same period last year. CEO Tim Cook attributed the increase to stronger-than-expected demand for the iPhone 16, which has outperformed the iPhone 15, especially among existing Apple customers seeking upgrades.
“It was an exceptional quarter by any measure,” Cook told CNBC. “Sales of the iPhone 16 were up strong double digits over last year.”
The Mac division also posted significant gains, rising nearly 15% to $8.05 billion, bolstered by the recent launch of updated MacBook Air models, Apple’s best-selling computers.
Meanwhile, Apple’s services business—including the App Store, iCloud, AppleCare, and media subscriptions—saw a 13% year-over-year growth, reaching $27.42 billion in revenue. Cook specifically pointed to strong growth in iCloud subscriptions and double-digit gains in App Store revenue.
Weak Spots: iPads and Wearables Decline
Not all segments saw gains. Revenue from Apple’s iPad line dropped 8% to $6.58 billion, despite the release of a budget-friendly iPad earlier this year. Similarly, the “Other Products” category—which includes wearables like the Apple Watch and AirPods—declined by 8.6% to $7.40 billion, missing analysts’ expectations.
Strong Rebound in China
Apple also saw a reversal of recent sluggish performance in China, reporting 4% growth in the Greater China region (which includes Hong Kong and Taiwan), with revenue rising to $15.37 billion. Cook credited part of the recovery to government subsidies on selected Apple products.
“The subsidy does apply to some of our products, and it clearly helps,” Cook noted.
Outlook for September Quarter and Tariff Costs
Apple provided rare forward guidance during the analyst call, anticipating mid- to high-single-digit revenue growth for the September quarter. The company expects gross margins to range between 46% and 47%, even after factoring in tariff-related expenses.
Apple incurred $800 million in tariff costs in the June quarter, lower than the projected $900 million. For the current quarter, that figure could rise to $1.1 billion, Cook revealed.
Apple Steps Up AI Investments
Addressing concerns about Apple’s position in the rapidly evolving artificial intelligence space, Cook said the company is significantly increasing its investments in AI, embedding it across all devices, platforms, and services.
“We view AI as one of the most profound technologies of our lifetime,” said Cook. “We’re embedding it across our devices, across our platforms, and across the company.”
Cook added that Apple had acquired around seven AI-related companies so far in 2025 to strengthen its technology stack. While none were large acquisitions, Cook emphasized Apple’s readiness to pursue mergers and acquisitions that accelerate its innovation roadmap.
Despite growing speculation around AI-powered devices, Cook dismissed fears that such innovations could replace the iPhone.
“It’s difficult to see a world where iPhone is not living in it,” he told analysts confidently.
Cash Reserves and M&A Flexibility
Apple ended the June quarter with a cash reserve of approximately $133 billion, maintaining ample flexibility for strategic investments and acquisitions as it continues to diversify and expand its ecosystem.
Source: My News Ghana
