Apple delivered third-quarter results that topped Wall Street forecasts Thursday, as soaring iPhone and Services revenues propelled the tech giant to new financial heights, even as concerns linger about tariffs, regulatory threats, and its position in the fast-accelerating AI race.
The company reported earnings per share of $1.57, well ahead of analysts’ consensus estimate of $1.43, while revenue climbed to $94 billion, beating projections of $89.22 billion. Both figures outstripped last year’s levels, cementing Apple’s resilience in the face of global economic challenges.
CEO Tim Cook hailed a record-setting June quarter with double-digit growth across the iPhone, Mac, and Services segments—momentum that extended across all major regions, including China. Sales in China reached $15.3 billion, narrowly surpassing expectations.
Critical to Apple’s success was the exceptional performance of its flagship device: iPhone sales surged to $44 billion, easily topping Street estimates of $39.8 billion. Services revenue also came in strong at $27.4 billion, underscoring the strategic shift toward recurring revenue streams and partially insulating Apple from device market volatility.
However, not all segments were equally robust. Mac revenue rose to $8 billion, but iPad and Wearables lines fell year over year, registering $6.5 billion and $7.4 billion, respectively.
Despite the upside surprise, Apple continues to face significant external pressures. President Trump’s tariff threats loom over the company, with the administration signaling a potential 25% import duty on iPhones unless more production is brought to the US.
Meanwhile, a high-profile antitrust case against Google threatens the lucrative $20 billion annual partnership that keeps Google Search as the default option on Apple’s Safari and Siri. An adverse court ruling, expected in August, could force Google to unwind exclusive deals—potentially carving a multibillion-dollar hole in Apple’s Services revenue line.
Layered onto these threats are concerns about Apple’s AI strategy. Analysts at Wedbush and BofA have flagged Apple’s methodical approach to AI as potentially risky, warning that as rivals leap ahead, Apple’s deliberate pace could become a liability.
Calls are mounting for CEO Tim Cook to accelerate AI investments, with suggestions the company acquire fast-moving startups or risk ceding its innovative edge.
