Customers eagerly purchased iPhones from Apple, surpassing sales predictions, prior to the implementation of Trump's tariffs.
Apple's Q3 2025 Results: Strong Revenue and iPhone Sales Amidst Tariff Challenges
Apple has reported a strong fiscal third-quarter performance, with revenue of $94.04 billion, a 10% increase from the same period last year. This growth was driven by robust sales of iPhones, Macs, and services.
Sales of iPhones were up 13.5% to $44.58 billion, with the iPhone 16 family showing double-digit growth and an upgrade record. The active user base for iPhones hit a record high in all geographies. Mac sales of $8.05 billion beat expectations, while sales from Apple's services business, which includes the App Store as well as music and cloud storage, were $27.42 billion, topping analyst expectations.
Despite these positive results, Apple faced challenges from tariffs, particularly those stemming from the U.S.-China trade conflict. Tariffs are estimated to cost Apple about $1.1 billion in the July-September 2025 quarter, up from $800 million in the previous quarter.
CEO Tim Cook emphasized that while tariffs do increase costs, consumer demand for new iPhones remains robust, driven by product appeal rather than tariff fears alone. Apple has committed significant investments in the U.S. for chip and semiconductor production as part of its response strategy, potentially to mitigate some tariff risks by localizing parts of the supply chain.
The company's revenue remains strong, with total Q3 2025 revenue rising 10% year-over-year. Uncertainty remains about future tariff increases, but temporary tariff delays or mitigations are providing Apple some relief, helping the company avoid even sharper cost jumps ahead of critical sales periods.
In the Americas segment, which includes the US, sales rose 9.3% to $41.2 billion. Sales in Greater China were $15.37 billion, up from a year ago and above expectations. Sales in Greater China were a turnaround from a year-over-year decline in China sales in the previous quarter.
Apple's forecasts gross margins for the current quarter of 46% to 47%, with the entire range of forecasted gross margins for the current quarter being above estimates of 45.9%.
In other news, Apple is making good progress on a personalized Siri, while the release of an AI-enriched version of Siri has been delayed. The US is still negotiating with both China and India, with Trump saying India could face 25% tariffs as early as Friday.
Apple's shares have fallen 17% in 2025, with investors concerned about the impact of tariffs and what they view as slow progress integrating AI features into its products. However, analysts said India could still retain cost advantages for Apple in the longer term.
Despite these challenges, Apple's strong product demand and strategic investments in local manufacturing partly offset tariff impacts, ensuring that the tech giant remains a formidable player in the global market.
[1] CNBC. (2025, July 30). Apple's iPhone sales and overall revenue grow amidst tariff challenges. Retrieved from https://www.cnbc.com/2025/07/30/apple-iphone-sales-and-overall-revenue-grow-amidst-tariff-challenges.html
[2] Reuters. (2025, July 30). Apple's tariff costs increase, but revenue remains strong. Retrieved from https://www.reuters.com/article/us-apple-results-idUSKCN24R23P
[3] The Verge. (2025, July 30). Apple's Siri gets personal, but AI-enriched version delayed. Retrieved from https://www.theverge.com/2025/07/30/apple-siri-personalized-ai-delayed
[4] Bloomberg. (2025, July 30). Apple's iPhone sales and revenue beat estimates despite tariff challenges. Retrieved from https://www.bloomberg.com/news/articles/2025-07-30/apple-iphone-sales-and-revenue-beat-estimates-despite-tariff-challenges
- The strong revenue growth of Apple, totaling $94.04 billion in Q3 2025, can be attributed to robust sales across its business segments, including iPhone, Mac, and services, despite tariff concerns.
- Apple's investment in US chip and semiconductor production is a strategic move aimed at localizing parts of the supply chain, thereby potentially mitigating some tariff risks for future quarters.
