Apple posted quarterly revenue of $94 billion, up 10 percent year-over-year, the largest quarterly growth spurt for the tech giant since December 2021. Net profit of $23.4 billion was a new record for the June quarter and up nearly 9 percent from the prior year. Sales of Apple’s iPhones totaled $44.6 billion for the quarter, a 13 percent increase year-over-year, with growth posted across “every geographic segment” and a record number of upgrades as customers raced to beat the impact of anticipated tariffs, according to the company. The results for Apple’s fiscal Q3 exceeded Wall Street estimates.

“Apple’s Mac business grew the fastest of any of Apple’s units during the June quarter, growing nearly 15 percent to $8.05 billion in revenue,” writes CNBC, noting that “Apple released updated MacBook Air laptops, its best-selling Mac, just before the quarter started.”

Apple services, which includes content subscriptions, licensing deals and warranties, grew to $27.42 billion in the period, up 13 percent, according to the company’s financial statement. Apple CEO Tim Cook “highlighted growth in the company’s iCloud subscriptions and said App Store revenue grew ‘double digits’ during the quarter,” CNBC adds.

“Another bright spot was a 4 percent increase in China sales, after declines in recent years,” The Wall Street Journal reports.

Misses included iPad sales, -8 percent to $6.58 billion, and wearables (including the Apple Watch, AirPods and accessories), -8.64 percent for $7.4 billion in quarterly sales.

Apple absorbed a 20 percent tariff on Chinese imports, but “softened the blow by shipping more U.S.-bound iPhones from India,” explains WSJ, noting Cook predicts “the company will face tariff costs of about $1.1 billion in the July-to-September period, compared with $800 million in the June quarter.”

The TechCrunch takeaway was that Apple “signaled that it’s getting more serious about its plans to catch up in the AI race,” quoting Cook saying the company is “reallocating a fair number of people” to work on AI.

“Apple has been criticized for having been caught off guard by the AI era; it has announced a number of AI features that it has, so far, failed to ship,” TechCrunch says, adding that an AI-powered version of Siri “wasn’t close to being ready to launch.”

That and other AI-related challenges were addressed at an all-hands meeting Friday, reported on by Apple Insider, which says the improved Siri will debut in spring of 2026.

Related:
Apple CEO Tells Staff AI Is ‘Ours to Grab’ in Hourlong Pep Talk, Bloomberg, 8/1/25
Apple’s New ‘Answers’ Team Eyes ChatGPT-Like Product in AI Push, Bloomberg, 8/3/25