Apple continued to record growth in Q3 2025, setting a new June quarter revenue record. This performance was driven by the company’s expanding ecosystem, which continues to attract new customers while fostering deep loyalty. At its core, Apple prioritises privacy, personalisation, and accessibility across its products and services, a strategy that helps differentiate its offerings and sustain long-term growth.
| Financial indicator | Q3 2024 (US$ million) | Q3 2025 (US$ million) | Percentage change |
| Revenue | 85,777 | 94,036 | +9.6% |
| Products | 61,564 | 66,613 | +8.2% |
| Services | 24,213 | 27,423 | +13.3% |
| Net income | 21,448 | 23,434 | +9.3% |
| Diluted earnings per share (US$) | 1.40 | 1.57 | +12.1% |
Revenue increased 9.6% year-on-year to US$94.0 billion, driven by growth across majority of the markets. Approximately one percentage point of the 10% revenue growth recorded was due to customers accelerating their purchases in April, likely influenced by concerns on prices over potential upcoming tariffs (principally on iPhone and Mac in the U.S.).
Products revenue was driven by double-digit growth across iPhone and Mac. The June quarter was a record for upgraders across iPhone, Mac, and Apple Watch, partly due to the interest in Apple silicon. The company continues to achieve high customer satisfaction as its active installed base hit a record high across all product categories and regions. New customer adoption remained strong, with over half of iPad and Apple Watch buyers during the quarter being first-time purchasers of those products.
Services revenue increased 13.3% year-on-year to an all-time high of US$27.4 billion, driven by double-digit broad-based growth in developed and emerging markets. Majority of services categories grew sequentially. In particular, revenue from cloud services reached an all-time high as iCloud paying accounts grew year-on-year.
Overall gross margin decreased from 47.1% in Q2 2025 to 46.5% in in Q3 2025 (up from 46.3% year-on-year), driven by tariff-related costs amounting to US$800 million. Products and services gross margins decreased 140 and 10 basis points sequentially to 34.5% and 75.6% respectively during the quarter.
Apple ended the quarter with a net cash position of US$31 billion. The company returned more than US$27 billion to shareholders including dividend payments totalling US$3.9 billion and share buybacks totalling $21 billion. A cash dividend of $0.26 per share has also been announced.
Apple is investing US$500 billion in the U.S. over the next four years to strengthen its domestic supply chain and manufacturing capabilities. For instance, the company is investing US$0.5 billion in MP Materials to secure vital rare earth materials used in iPhone and other products. The company also established an Apple Manufacturing Academy in Detroit to support advanced manufacturing. The company acquired approximately seven companies in 2025 to help advance its business roadmaps.
Capital expenditure is expected to increase substantially (not exponentially) to support Apple’s hybrid AI and cloud strategy. The company is investing in both third-party infrastructure and its own Apple Silicon-powered private cloud compute and data centres. This approach enables on-device foundation models for private, offline AI experiences, while its custom servers handle more advanced tasks with a continued focus on user privacy.
CFO Kevin Parekh guided for overall year-on-year revenue growth of mid- to high single digits in the upcoming quarter. This guidance reflects a challenging comparison to a very strong Q4 2024, which benefited from the full quarter impact of new iPad launches, and also takes into account the one percentage point of growth brought forward by tariff-related purchases into the current quarter. The foreign exchange tailwind is expected to be minor while services revenue growth will maintain at a similar rate reported in this quarter. Gross margin in the upcoming quarter is expected to hover between 46% and 47% due to the negative impact of tariff-related costs totalling US$1.1 billion.
Apple has rolled out Apple Intelligence features in the developer betas of iOS 26, macOS Tahoe 26, and iPadOS 26. It has introduced over 20 new features, including visual intelligence, powerful writing tools, and real-time call screening, with plans for a more personalised Siri to be released next year. The company also announced a new, unified software design language called Liquid Glass, which extends across all of its platforms.
Products
In Q3 2025:
- Revenue from iPhone grew 13.5% year-on-year to US$44.6 billion, driven by upgraders to the iPhone 16 family.
- Mac revenue increased 14.8% year-on-year to US$8.0 billion, largely driven by M4 MacBook Air.
- iPad revenue decreased 8.1% year-on-year to US$6.6 billion as iPad Air and iPad Pro were launched in the previous corresponding quarter.
- Revenue from Wearables, home, and accessories decreased 8.6% year-on-year to US$7.4 billion due to a strong Q3 2024 quarter.
Apple highlighted several key product achievements, including the shipment of the three billionth iPhone since its 2007 launch. According to Worldpanel (formerly known as Kantar), iPhone was the best-selling smartphone in the U.S., urban China, the U.K., Australia and Japan in the June quarter. iPhone recorded growth in every region and double-digit growth in emerging markets such as India, the Middle East, South Asia and Brazil.
The Mac segment saw strong momentum, with first-time purchasers and upgraders growing by double digits. Mac revenue also posted double-digit growth in Europe, Greater China, and the rest of Asia Pacific. As the Apple Watch celebrates its 10th anniversary, its core positioning as a health product remains a key driver. The company reported significant traction in the enterprise sector, with strong adoption of Mac, iPad, and Apple Vision Pro by leading global companies. The introduction of spatial widgets in visionOS 26 allows developers to build new spatial experiences for their enterprises.
Services
The Services segment delivered a record quarter, driven by strong growth across its platforms. The total number of paid subscriptions exceeded 1 billion, with paid and transacting accounts both reaching new all-time highs. App Store revenue grew by double digits, setting a new June quarter record. Apple TV+ viewership grew by double digits, fuelled by critically acclaimed original content. The company is continuing its global expansion, recently opening an online store in Saudi Arabia and a new retail store in Osaka, Japan, with plans for new stores in the UAE and India later this year.
Key analyst questions
Revenue from Greater China grew 4.4% sequentially in Q3 2025, driven primarily by iPhone upgraders, followed by Mac as well as the government subsidies. According to Worldpanel, the top three most popular smartphones in Urban China belong to Apple. Majority of Mac, iPad and Watch buyers in China were first-time purchaser. The MacBook Air and the Mac mini were the top-selling laptop and desktop model respectively in the country.
CEO Tim Cook believes new form factors and AI-driven interactions will add to or work alongside existing devices like the iPhone, rather than completely replacing them. This is a common strategy in tech to avoid cannibalising existing successful product lines while exploring new growth areas. He also defended the continued relevance of the iPhone as a central device due to its versatility.
Google’s US$20 billion annual payments to Apple for default search engine on Safari make up around 20% of Apple’s services revenue and potentially a significant portion of its operating profit. Apple’s services segment has been a key growth engine for the company, especially as hardware sales mature.
The ongoing U.S. Department of Justice antitrust case against Google directly targets these payments, arguing they are anti-competitive. A ruling against Google could force them to end these agreements or implement “choice screens” that would reduce Apple’s revenue and profit from this source.
Apple can no longer profit from purchases made outside the app and is banned from imposing restrictions on how developers’ direct users to alternative payments (Epic Games case). The change was made during the quarter, yet Apple’s services revenue still grew. The company continues to position App Store as safe and trusted so that it will not lose too much revenue to third-party avenues.
Cook reminded an analyst that majority of Apple’s products including India-made iPhones are under covered a Section 232 investigation, which temporarily exempts them from some tariffs. Apple is expanding its manufacturing facilities in India to diversify its supply chain from China. The majority of iPhones sold in the U.S. now originate in India. The majority of Mac, iPad, and Apple Watch products sold in the country originate in Vietnam. The vast majority of products for international countries still come from China. Its diversification efforts could face headwinds from new tariffs on Indian exports, which could complicate its supply chain strategy.
The fifth perspective
The management’s outlook was marked by a note of caution due to a challenging macroeconomic backdrop due to ongoing uncertainty around tariff rates. Tariff costs are linear with volume and are expected to increase in the upcoming holiday quarter (Q1 2026), Apple’s highest volume period. To prepare for this, the company proactively managed its supply chain by reducing channel inventory to the low end of its targeted range, a strategic move that helps optimise costs and positions the company for a strong sales cycle.
