Apple says it will have to stop end-to-end encryption for British clients and iPhone users
AFP News

Apple defied Wall Street's muted expectations with a blockbuster third quarter, posting revenue of $94.0 billion (£70.91 billion) that sent ripples through the tech world—even as lingering AI concerns and tariff pressures kept the stock's celebration in check.

The tech giant's strongest quarterly revenue growth since December 2021 showcased remarkable resilience, with iPhone sales surging 13% year-over-year and total revenue climbing 10%, painting a picture of a company firing on all cylinders despite economic headwinds.

Apple's Modest Stock Recovery

Apple's stock rebounded modestly after its fiscal Q3 earnings beat, but broader market concerns pressured the share price in after-hours trading. For the quarter ending, the company posted earnings per share of $1.57, beating analyst expectations by roughly 5% and 10%, respectively.

Despite the results, investor caution over AI lag, geopolitical tariff risks, and legal uncertainty around Google's search deal limited enthusiasm, capping the stock's rise at around 2.4 % after hours.

Moreover, Apple projects mid- to high-single-digit revenue growth for the upcoming quarter and is accelerating AI-related M&A activity.

More on Apple's Q3 Results

Standout performance came from iPhone sales, which surged 13% to $44.6 billion (£33.65 billion), while services revenue hit a record $27.4 billion (£20.67 billion), also growing 13%. Mac revenue rose to about $8.05 billion (£6.07 billion), up around 15%, even as iPad and wearables saw declines.

Across regions, America's revenue climbed 9.3% to $41.2 billion (£31.08 billion), while Greater China rose 4% to $15.37 billion (£11.60 billion). Europe contributed $23.06 billion (£17.40 billion), Japan delivered $6.3 billion (£4.75 billion), and the rest of Asia‑Pacific totalled $7.67 billion (£5.79 billion).

CEO Tim Cook emphasised that iPhone growth was broad-based across all major markets—including India, Latin America, the Middle East, and South Asia—with emerging economies experiencing double-digit expansion.

'Strong Reflection of Company Performance'

CEO Tim Cook highlighted double-digit growth in iPhone, Mac, and Services revenue, alongside gains in every geographic region, in its latest statement. He also emphasised the unveiling of Apple Intelligence features and a new cross-platform software design at WWDC25.

'Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that's at the heart of our AI strategy. With Apple Intelligence, we're integrating AI features across our platforms in a way that is deeply personal, private, and seamless, right where users need them,' he said.

Meanwhile, Apple CFO Kevan Parekh added that Apple's active device base reached an all-time high across all products and regions, attributing this to high customer satisfaction and loyalty.

'Our installed base of active devices also reached a new all-time high across all product categories and geographic segments, thanks to our very high levels of customer satisfaction and loyalty,' he said.

Resilience Amidst Challenges

Apple's Q3 2025 performance reflects not only its resilience in the face of economic and geopolitical challenges but also its ability to adapt and innovate across hardware, services, and AI. With strong financials, expanding global demand, and a growing active device base, the company enters the final quarter of its fiscal year with solid momentum.

While investors remain watchful of tariff pressures and Apple's evolving AI strategy, the company's clear focus on platform-wide intelligence and ecosystem integration positions it well for long-term growth.

With robust financials underpinning its ambitions, an ever-expanding global footprint, and a record-breaking active device base providing a massive platform for services growth, Apple enters its fiscal year's final quarter with considerable momentum.