Apple Q3 FY2025: Solid growth, AI investment under spotlight

Apple delivered a strong fiscal third quarter ended June 28, 2025, posting revenue of $94.04 billion, up 10 percent from a year ago, and exceeding analyst expectations of around $89.5 billion. Net income rose to $23.43 billion, up about 12 percent year‑on‑year.

iPhone revenue led the charge, climbing 13 percent to $44.58 billion, contributing nearly all the growth in the quarter and beating forecasts. Mac sales rose 15 percent to about $8.05 billion, while tablet demand continued to shrink, with iPad revenue declining roughly 8 percent to $6.58 billion. Services again delivered standout performance, hitting a record $27.42 billion, up about 13 percent and driven by strong momentum across App Store, subscriptions, cloud and other ecosystems.

Despite the strength, Apple still absorbed roughly $800 million in tariff-related costs during the quarter and expects another $1.1 billion hit in Q4 if current trade policies persist. The company has shifted much of its U.S.-bound iPhone production to India and moved Mac and other manufacturing to Vietnam to mitigate rising trade friction.

CEO Tim Cook outlined Apple’s increasing investment in artificial intelligence, confirming that resources are being reallocated internally and that a more personalized AI‑powered version of Siri is expected in 2026. Analysts have cautioned that Apple continues to lag competitors in AI innovation, particularly given delays in Apple Intelligence and limited rollout in China, and see sustained AI effort as essential for long‑term competitiveness.

Overall, Apple’s June quarter showcased strong core performance led by iPhone and services growth. At the same time, elevated trade costs, AI execution challenges and geopolitical uncertainty remain key risk areas. Investors and marketers will be closely watching how Apple’s upcoming Siri enhancements and AI playbook unfold in the year ahead.