Apple held an earnings name for the third fiscal quarter (second calendar quarter) of 2025 as we speak, beating expectations with income of $94 billion. Throughout the name, Apple CEO Tim Cook and CFO Kevan Parekh shared insights into gadget gross sales, tariffs, and extra.
iPhone Recognition
The iPhone 16 fashions have been extra widespread than the iPhone 15 fashions have been final 12 months. Cook dinner mentioned that iPhone 16 gross sales elevated “sturdy double digits” in comparison with the iPhone 15, with the iPhone 16 widespread with customers upgrading to a brand new mannequin.
Apple set a June quarter document for upgraders, and Cook dinner mentioned that was due to the “energy of the product.”
Apple lately shipped its 3 billionth iPhone because the gadget debuted in 2007.
3 billion iPhones offered!
Thanks to everybody who’s made iPhone such an essential a part of their lives. I am extremely excited for what’s forward!
— Greg Joswiak (@gregjoz) July 31, 2025
AI
Cook dinner mentioned that Apple is “very open” to an acquisition that may speed up its AI growth roadmap. AI is “some of the profound applied sciences of our lifetime,” Cook dinner mentioned, including that Apple is “considerably rising” its investments and reallocating folks to work on AI on the firm. “We’re placing all of our vitality behind it,” Cook dinner mentioned.
“We’re not caught on a sure measurement firm,” Cook dinner added throughout the name. “We principally ask ourselves whether or not an organization will help us speed up a highway map, if in the event that they do, then we’re , however we do not have something to share particularly as we speak.”
Cook dinner also said that Apple is “making good progress” on growing a extra personalised model of Siri that’s powered by Apple Intelligence. Apple is on monitor to launch the options subsequent 12 months.
Cook dinner was requested whether or not massive language fashions like ChatGPT might be a commodity sooner or later. Cook dinner declined to speak converse on he topic as a result of “that offers away some issues in our technique.”
The best way that we have a look at AI is that it is some of the profound applied sciences of our lifetime, and I believe it’s going to have an effect on all units in a major manner. What items of the chain are commoditized and never commoditized? I would not need to actually speak about as we speak, as a result of that offers away some issues on our technique.
Tariffs
Based on Cook dinner, roughly one share level of Apple’s 10 p.c gross sales development could be attributed to clients buying more products to get forward of tariffs.
“We noticed proof within the early a part of the quarter, particularly, of some pull-ahead associated to the tariff bulletins,” Cook dinner informed Reuters.
Cook dinner mentioned that tariffs value the corporate $800 million within the June quarter, and that the affect might be $1.1 billion within the September quarter.
To mitigate tariffs sooner or later, Apple is optimizing its provide chain, and Cook dinner mentioned the corporate “will do extra in america.”
Publish iPhone Units
Cook dinner was requested about AI growth and what Apple would do if dependence on screens diminishes. Cook dinner mentioned that it is “troublesome to see a world the place iPhone’s not residing in it.”
He mentioned that Apple is “enthusiastic about different issues,” however these future units are more likely to be “complementary units” not substitutions.
Companies
Companies income was $27.4 billion, up from $24.2 billion within the year-ago quarter, marking an all-time income document. Apple TV+ viewership was up sturdy double digits 12 months over 12 months.
App Store income grew double digits 12 months over 12 months, and cloud providers additionally noticed an all-time income document. Paid accounts and paid subscriptions grew double digits 12 months over 12 months, and Apple has “effectively over a billion” paid subscriptions throughout providers.