Apple Posts Record June Quarter Revenues

Apple revenues in the second quarter of 2025 (fiscal 3Q25) grew 10% YoY, reaching $94.0 billion, a Q2 record. This was the highest growth in 14 quarters.

Both hardware (8% YoY) and services (13%) grew at a healthy pace. iPhones were 47% of total revenues. Mac captured 9% of total revenues and was the fastest-growing segment. Services captured 29% of total revenues and recorded a new all-time high. Wearable, Home, and Accessories continued to decline as both Watch and AirPods revenues fell. The segment has been declining for two years, and revenues for Apple Watch have been declining for seven consecutive quarters.

CEO Tim Cook warned of increasing tariff costs and opened the door to a potential acquisition to boost the company’s floundering AI ambitions. In an earnings call, Cook noted the situation around tariffs is evolving, with costs forecast to rise from $800 million in fiscal Q3 to $1.1 billion in the current quarter. Cook stated that while the bulk of iPhones sold in the US are shipped from India and most Macs, iPads, and Watches sold in the US are made in Vietnam, the vast majority of products for international countries come from China. “I would stress again that we do a lot in the United States, and we’ve committed $500 billion, and we’re always looking to do more.”

On AI, Cook said the company is growing its investment in the technology and planned to do so again in the current quarter, but did not provide specific numbers. It spent $8.8 billion on R&D during the period, up by about $800 million from last year. “We’re very open to mergers and acquisitions that accelerate our roadmap. We are not stuck on a certain size company,” he added when asked about a potential acquisition in the AI space.