Apple has achieved its highest quarterly revenue growth since December 2021, primarily fueled by a significant rise in iPhone sales performance. In the third quarter of 2025, Apple’s total revenue rose by 10% year-over-year to reach $94.04 billion, beating Wall Street estimates. This growth was largely supported by a 13% increase in iPhone sales, bringing in $44.58 billion in revenue, which was significantly higher than expected.
CEO Tim Cook confirmed during the earnings call that Apple would continue to heavily invest in artificial intelligence. He emphasized that AI is one of the most important technologies of our time and revealed that the company had already acquired around seven AI-focused companies this year. While the deals were not large in value, Cook stated that Apple is open to acquisitions that can speed up its innovation plans.
Other areas of Apple’s business also performed well. The Mac segment saw the fastest growth, climbing nearly 15% to $8.05 billion, helped by new MacBook Air releases. Services, which include iCloud, AppleCare, and the App Store, rose 13% to $27.42 billion. Cook highlighted strong growth in both iCloud subscriptions and App Store revenue.
Key points from the quarter include:
- EPS came in at $1.57, with net income of $24.43 billion
- Gross margin rose to 46.5%, higher than expectations
- Apple’s sales in China grew by 4%, reaching $15.37 billion, supported in part by government-backed subsidies on select devices.
However, iPad revenue fell 8% to $6.58 billion, and Apple’s wearables category, which includes AirPods and the Apple Watch, dropped 8.64% to $7.4 billion. Despite these weaker spots, Cook described the quarter as outstanding and noted that customers were buying more products ahead of possible new tariffs. Looking ahead, Apple expects continued growth in revenue and services in the September quarter.
