Apple reported strong revenue growth in the most recent quarter, driven by sales of legacy products like the iPhone, iPad, Mac, and App Store.
Why it matters: The results exceeded expectations and helped alleviate concerns about Apple’s ability to innovate and compete in the era of artificial intelligence.
The details:
- Revenue increased 9.6% to $94.04 billion, surpassing analyst predictions of $89.34 billion.
- Profits rose 9% to $23.43 billion, exceeding the company’s previous record for the quarter set in 2021.
- iPhone sales increased more than 13% to $44.58 billion, partly due to U.S. customers buying products before tariffs raised prices.
- Apple also reported double-digit sales growth for the Mac and a 13.3% increase in services revenue to $27.42 billion.
The company said it expects revenue to grow 4-9% in the current quarter, despite facing challenges such as disappointing investors with its slow release of AI products, exposure to tariffs on smartphones made abroad, and potential antitrust actions.
What they’re saying:
- “The perception is Apple is missing the boat on this A.I. revolution,” said Mike Frazier, chairman of Bedell Frazier Investment Counselling, an Apple investor.
- CEO Tim Cook said Apple is making “good progress on a more personalized Siri” and expects to release the product next year, adding that the company is significantly increasing its investment in AI.
Apple continues to face challenges in China, where domestic companies are cutting into its market share, and the company is shifting more iPhone production to India to mitigate the impact of U.S. tariffs.
What’s next: Apple’s services business, a significant source of revenue, could be impacted by a federal judge’s upcoming decision on restricting payments from Google to be the default search engine on iPhones.
Recent from X
3 billion iPhones sold!
Thank you to everyone who’s made iPhone such an important part of their lives. I’m incredibly excited for what’s ahead!
— Greg Joswiak (@gregjoz) July 31, 2025
That was an interesting Apple quarter and call. Many analysts on the call sounded confused (not that surprising). I will now populate my models and let things soak in. Will share my initial takeaways with subscribers tomorrow (Friday) in the AM. https://t.co/yntiiIiC7W
— Neil Cybart (@neilcybart) July 31, 2025
Apple: Our capex will increase substantially (due to AI).
First time Apple has ever said that.
— Neil Cybart (@neilcybart) July 31, 2025
"Apple has reported record revenues and done so with success in three key areas, none of which required Apple Intelligence, which analysts insisted the company needed to concentrate on. Here's how the quarter compares." https://t.co/GxEwAJ2UBF
— Amber Mac (@ambermac) August 1, 2025