Apple has posted $94.04 billion in revenue for the third fiscal quarter ending June 28, 2025-its strongest quarterly growth since 2021. The 10% year-on-year increase was driven largely by the success of the iPhone 16 and a robust performance in services.
iPhone revenue jumped 13% to $44.58 billion, with CEO Tim Cook attributing the surge to strong upgrades from existing users. The services segment, which includes the App Store, iCloud, Apple Music, and AppleCare, brought in $27.42 billion-up 13% from the previous year-buoyed by rising iCloud subscriptions and App Store growth.
Apple’s Mac sales rose nearly 15% to $8.05 billion, supported by the launch of updated MacBook Air models. However, not all divisions saw gains. iPad revenue declined 8% to $6.58 billion, while “Other Products,” including Apple Watch and AirPods, dropped 8.64% to $7.4 billion.
The company’s gross margin stood at 46.5%, slightly above expectations. Tariff-related expenses came in at $800 million, though Cook warned they could rise to $1.1 billion next quarter if trade tensions persist.
Apple expects mid- to high-single-digit revenue growth for the September quarter, with gross margins between 46–47%. Notably, about 1% of revenue this quarter was driven by early purchases ahead of potential tariffs.
Reaffirming its AI focus, Cook said Apple is embedding AI “across devices and platforms” and has already acquired seven AI companies this year. “It’s hard to imagine a world where the iPhone doesn’t exist,” he added.
