Cupertino’s comeback kid: With iPhones doing the heavy lifting, Apple shrugs off the gloom and posts a clean beat for Q3
Apple has done it again, snatching another quarterly win from the jaws of analyst doubt. The tech giant’s third quarter earnings report dropped yesterday and brought some much-needed good news for investors: revenue came in at $94 billion, beating expectations and up 10% year on year, largely thanks to an unexpected jump in iPhone sales.
You read that right. The iPhone, the product Wall Street loves to prematurely eulogize, posted a year-over-year sales increase, pulling in $44.58 billion this quarter, up 13.5%. That’s around $4 billion more than analysts had anticipated. Apparently, there are still enough people on the planet willing to shell out over a grand for marginal camera upgrades. Apologies for the snark, the latest models are great, as usual but, as usual, they’re overpriced.
CEO Tim Cook, naturally, was ready with the victory lap. “Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment,” said Tim Cook, Apple’s CEO. “At WWDC25, we were excited to introduce a beautiful new software design that extends across all of our platforms, and we announced even more great Apple Intelligence features.”
All good news? Sure. But, iPhone is the key.
Apple’s share price reacted accordingly. After the earnings were released, shares rose around 2-3% in after-hours trading.
Investors found comfort in Apple’s forward guidance. The company hinted at continued strength in iPhone sales for the next quarter and suggested that wearables and iPads, which declined this time, could see an improvement ahead.
No flashy artificial intelligence (AI Artificial Intelligence (AI) Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in Read this Term) announcement, no “one more thing”, no big pivot, just solid numbers and a calm tone from the executive suite. In this market, that’s practically a flex.
It wasn’t a flawless quarter. Mac sales of $8.05 billion beat expectations of $7.26 billion, and wearables (yes, that includes your Apple Watch and AirPods) did $7.4 billion, missing estimates of $7.82 billion. Services, long considered the company’s golden goose, pulled in $27.42 billion, topping analyst expectations of $26.8 billion. iPads hit $6.58 billion in sales, missing expectations of $7.24 billion
As a Mac user for over 25 years, I’m happy to say that the Apple silicon MacBook Pros are … great. They’re fast, powerful, offer a load of options in terms of RAM and storage … but they’re incredibly expensive for what you’re getting and the upgrade pricing is eye watering. Perhaps in these challenging times, that’s becoming more of a factor. But if you’re wedded to Mac OS, or love a good piece of aluminum, you’re probably all in.
Still, the real story here is how the iPhone is carrying the whole ecosystem. Critics have spent years calling Apple a one-trick pony, and while the company has made attempts to diversify (hello, Vision Pro), it turns out the old pony can still shift when it needs to.
Added to that, the firm unveiled the impact of tariffs, with a $1.1 billion increase in costs just from tariffs for the current quarter.
So while Cook and co. talk up services, privacy, and environmental goals, the quarterly earnings math remains simple: sell iPhones, win quarter.
With Q3 in the bag, all eyes are on the September quarter, typically Apple’s most lucrative thanks to new product launches. The company didn’t give away much, as usual, but reading between the lines, they’re expecting a strong iPhone 16 cycle and probably a little help from back-to-school Mac and iPad sales.
Meanwhile, Apple continues to invest heavily in AI, cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term infrastructure, and who knows what else in its top-secret R&D bunker. But for now, Wall Street is just relieved that people are still buying iPhones in a saturated smartphone market.
Maybe the iPhone isn’t dead. Maybe it just needed another incremental upgrade.
