Apple Inc. reported its fiscal third-quarter (Q3) 2025 earnings for the period ending June 28, 2025, on Thursday, exceeding Wall Street expectations, particularly for iPhone sales.
The strong performance was partly driven by U.S. consumers rushing to purchase iPhones ahead of potential price increases due to tariffs imposed by the Trump administration.
Key Financial Highlights for Q3 2025 Earnings Per Share (EPS):
- Net income: reached $24.43 billion, up from $21.45 billion year-over-year.
- Revenue: Total revenue was $94.04 billion, a 10% year-over-year increase from $85.78 billion, beating analyst expectations of $89.53 billion. This marked Apple’s largest quarterly revenue growth since December 2021.
- iPhone Sales: iPhone revenue reached $44.58 billion, up 13% from $39.67 billion in Q3 2024, significantly exceeding Wall Street’s forecast of $40.22 billion. The growth was driven by strong demand for the iPhone 16, with CEO Tim Cook noting “strong double-digit” sales increases compared to the iPhone 15.E
- Revenue hit a record $27.42 billion, up 13.3% from $24.2 billion, topping estimates of $26.8 billion. This includes App Store, Apple Music, Apple TV+, Apple Pay, and iCloud.
Apple estimated a $900 million cost impact from tariffs in the June quarter, primarily due to a 20% tariff on goods from China, where Apple still manufactures a significant portion of its products for non-U.S. markets. To mitigate this, Apple has shifted production, with 44% of U.S.-bound iPhones now assembled in India (up from 13% in Q2 2024) and most iPads, Macs, and Apple Watches sourced from Vietnam.
CEO Tim Cook emphasized that the majority of iPhones sold in the U.S. in Q3 were made in India, reducing exposure to China’s 145% tariffs.
While Apple has not raised iPhone prices yet, Jefferies analysts suggested a potential $50 price hike for some iPhone 17 models (expected in September 2025) to offset tariff costs.