Apple's Q3 2025 Earnings Call Takeaways: AI Growth, 3 Billionth iPhone Shipped

[MacRumors]

Apple held an earnings call for the third fiscal quarter (second calendar quarter) of 2025 today, beating expectations with revenue of $94 billion. During the call, Apple CEO Tim Cook and CFO Kevan Parekh shared insights into device sales, tariffs, and more.

iPhone Popularity

The iPhone 16 models were more popular than the iPhone 15 models were last year. Cook said that iPhone 16 sales increased "strong double digits" compared to the iPhone 15, with the iPhone 16 popular with users upgrading to a new model.

Apple set a June quarter record for upgraders, and Cook said that was because of the "strength of the product."

Apple recently shipped its 3 billionth iPhone since the device debuted in 2007.

https://twitter.com/x/status/1951042159639142576

AI

Cook said that Apple is "very open" to an acquisition that would accelerate its AI development roadmap. AI is "one of the most profound technologies of our lifetime," Cook said, adding that Apple is "significantly growing" its investments and reallocating people to work on AI at the company. "We're putting all of our energy behind it," Cook said.

"We're not stuck on a certain size company," Cook added during the call. "We basically ask ourselves whether a company can help us accelerate a road map, if if they do, then we're interested, but we don't have anything to share specifically today."

Cook also said that Apple is "making good progress" on developing a more personalized version of Siri that is powered by Apple Intelligence. Apple is on track to release the features next year.

Cook was asked whether large language models like ChatGPT could be a commodity in the future. Cook declined to talk speak on he subject because "that gives away some things in our strategy."

The way that we look at AI is that it's one of the most profound technologies of our lifetime, and I think it will affect all devices in a significant way. What pieces of the chain are commoditized and not commoditized? I wouldn't want to really talk about today, because that gives away some things on our strategy.

Tariffs

According to Cook, approximately one percentage point of Apple's 10 percent sales growth can be attributed to customers buying more products to get ahead of tariffs.

"We saw evidence in the early part of the quarter, specifically, of some pull-ahead related to the tariff announcements," Cook told Reuters.

Cook said that tariffs cost the company $800 million in the June quarter, and that the impact could be $1.1 billion in the September quarter.

To mitigate tariffs in the future, Apple is optimizing its supply chain, and Cook said the company "will do more in the United States."

Post iPhone Devices

Cook was asked about AI development and what Apple would do if dependence on screens diminishes. Cook said that it's "difficult to see a world where iPhone's not living in it."

He said that Apple is "thinking about other things," but those future devices are likely to be "complementary devices" not substitutions.

Services

Services revenue was $27.4 billion, up from $24.2 billion in the year-ago quarter, marking an all-time revenue record. Apple TV+ viewership was up strong double digits year over year.

App Store revenue grew double digits year over year, and cloud services also saw an all-time revenue record. Paid accounts and paid subscriptions grew double digits year over year, and Apple has "well over a billion" paid subscriptions across services.

Article Link: Apple's Q3 2025 Earnings Call Takeaways: AI Growth, 3 Billionth iPhone Shipped

 

[Justin Cymbal]

Does the person who purchased the 3rd billionth iPhone get an iTunes gift card? Like what they do with the App Store:

Apple Announces Winner of App Store's 50 Billionth Download Contest

Apple today announced the winner of its "50 Billion App Countdown" promotion that saw the company pass that milestone on Wednesday afternoon....

www.macrumors.com

 

[tomtad]

Cook essentially announcing they’ll acquire an AI company.

Also I don’t believe they’ve sold more iPhone 16s than 15s. Or are they excluding Pros in those calculations?

 

[TVreporter]

<<Insert Apple is doomed comment here>>

Of course more people are buying iPhone 16 - you left the 15 to rot and conveniently cut it off from AI. Not that it's really a selling point at the moment.

Regards,

A still bitter iPhone 15 owner.

 

[Baritone_Guy]

This was before Trump announced 25% tariffs on India.

 

[TracesOfArsenic]

Cook essentially announcing they’ll acquire an AI company.

Also I don’t believe they’ve sold more iPhone 16s than 15s. Or are they excluding Pros in those calculations?

My thoughts too. I'm guessing it's a clever play on words to get around the technicality of it not being true. Like a legally tight way of implying it but being able to deny it if he gets called out on it. (Just like "maple flavoured syrup" labels that try to hide that it's not real maple syrup)

 

[jayducharme]

I can't even fathom 3 billion iPhones. That's just an insane number. It's a good thing Steve Jobs didn't listen to Michael Dell's advice.

 

[DocMultimedia]

This was before Trump announced 25% tariffs on India.

It might be 150% tomorrow. Or 10%. Stability is the concern for the next few years.

 

[Pootie Tang]

8.2 billion people on this planet and 3 billion I-Phones shipped. Whew.

 

[appleCakes]

Apple + Perplexity = Applexity in consideration.

 

[eifelbube]

…
Apple recently shipped its 3 billionth iPhone since the device debuted in 2007.

So my purchases account for 0.000000001%.

 

[DownUnderDan]

So my purchases account for 0.000000001%.

True, but you were the decider. A billion of us wouldn't have pulled the trigger without your leadership. I don't think you get the thanks you deserve. Certainly an iTunes gift card should be making its way to you.

 

[loopy123]

<<Insert Apple is doomed comment here>>

Of course more people are buying iPhone 16 - you left the 15 to rot and conveniently cut it off from AI. Not that it's really a selling point at the moment.

Regards,

A still bitter iPhone 15 owner.

My iPhone 15 Pro would beg to disagree 😄

 

[AlanBeyond]

Does the person who purchased the 3rd billionth iPhone get an iTunes gift card? Like what they do with the App Store:

Apple Announces Winner of App Store's 50 Billionth Download Contest

Apple today announced the winner of its "50 Billion App Countdown" promotion that saw the company pass that milestone on Wednesday afternoon....

www.macrumors.com

I think its hard for them to track who exactly bought the 3rd B phone, because apple sold many phone to retailers and ISPs, not directly to customers.

 

[senttoschool]

AI is "one of the most profound technologies of our lifetime," Cook said, adding that Apple is "significantly growing" its investments and reallocating people to work on AI at the company. "We're putting all of our energy behind it," Cook said.

AI has the potential to make iOS irrelevant. Don't need apps. In a few years, you don't need iOS. Just need a device connected to the internet and ChatGPT.

 

[ghanwani]

I contributed to these results by:
- Buying a replacement SE 3 since I broke mine.
- Apple Music.
- iCloud storage (a buck a month; everything counts).

 

[WWP99]

Apple will be passing these tariffs onto its customers because that's what tariffs are -- a tax on consumers.

 

[iToph]

Apple in 2035:
We didn’t do anything wrong, but somehow, we lost.

 

[FriendlyMackle]

My thoughts too. I'm guessing it's a clever play on words to get around the technicality of it not being true. Like a legally tight way of implying it but being able to deny it if he gets called out on it. (Just like "maple flavoured syrup" labels that try to hide that it's not real maple syrup)

Velveeta = ‘cheese product’

 

[svish]

3 billion devices is a huge number!! Don't think the iPhone is going anywhere even if AI develops. Services continue to bring in a lot of money and the new AppleCare One should definitely help to increase revenues even further.

 

[Falco McGregor]

AI has the potential to make iOS irrelevant. Don't need apps. In a few years, you don't need iOS. Just need a device connected to the internet and ChatGPT.

Most third-party consumer apps are going to fight that change tooth and nail. They might have issues with Apple’s tight control of the App Store, but that model still allows them direct consumer visibility. None of them are going to want every interaction with their customers/users to happen through ChatGPT.

 

[iMac The Knife]

Cook said that tariffs cost the company $800 million in the June quarter, and that the impact could be $1.1 billion in the September quarter.

To mitigate tariffs in the future, Apple is optimizing its supply chain, and Cook said the company "will do more in the United States."

Perhaps Tim Apple should have starting "doing more in the United States" sooner. #Cook

 

[ofarlig]

Cook said that tariffs cost the company $800 million in the June quarter, and that the impact could be $1.1 billion in the September quarter.

To mitigate tariffs in the future, Apple is optimizing its supply chain, and Cook said the company "will do more in the United States."

Perhaps Tim Apple should have starting "doing more in the United States" sooner. #Cook

Why not just raise prices in the US? Most of Europe have VAT that far exceed the sales tax in the US so Apple products are already more expensive here, tariffs are just another way for the government to collect taxes on sales.

 

[M4th]

Cook declined to talk speak on he subject because "that gives away some things in our strategy."

^ This sentence from the article could use a bit of clean up.