Apple (NASDAQ:AAPL) reported fiscal third-quarter revenue of $109.4 billion, up 16% from a year earlier and a June-quarter record, as double-digit gains in iPhone, Mac and services offset supply constraints and foreign-exchange headwinds.
Net income totaled $29.8 billion, while diluted earnings per share rose 29% year over year to $2.02. CFO Kevan Parekh said EPS included an $0.11 favorable impact from tariff refunds. Operating cash flow reached a June-quarter record of $34.4 billion.
iPhone and Mac Lead Product Growth
iPhone revenue rose 22% to a June-quarter record of $54.3 billion, driven by the iPhone 17 family. Cook said Apple recorded June-quarter iPhone revenue records across every geographic segment and set a record for upgraders. Parekh added that the iPhone active installed base reached an all-time high.
Mac revenue climbed 29% to $10.4 billion, also a June-quarter record, despite what Cook described as significant supply constraints. Growth was led by MacBook Pro and the newly introduced MacBook Neo. Apple said it gained global market share in both iPhone and Mac, citing IDC data.
iPad revenue, however, declined 6% from a year earlier to $6.2 billion, which Parekh attributed to a difficult comparison against the launch of the A16-powered iPad in the prior-year period. Wearables, home and accessories revenue increased 6% to $7.9 billion, helped by wearables and accessories.
Apple’s installed base surpassed 2.5 billion active devices, reaching all-time highs across major product categories and geographic segments, according to Parekh.
Services Sets Records Despite Currency Pressure
Services revenue rose 12% to a June-quarter record of $30.7 billion. Apple said it set revenue records in every services category, including all-time records in cloud services and payment services. The company surpassed 1.5 billion paid subscriptions, while both transacting accounts and paid accounts reached all-time highs.
Still, Parekh said foreign exchange was the main factor behind the sequential slowdown in services growth. He also cited a year-over-year comparison affected by the theatrical release of F1 in the prior period, headwinds in mobile gaming, and changes to the App Store business model in certain countries.
Apple said App Store revenue still reached a June-quarter record. Parekh said Apple continues to operate under a U.S. court ruling affecting link-out transactions and that the company was pleased the Supreme Court would hear its appeal.
Supply Constraints and Memory Costs Shape Outlook
For the September quarter, Apple forecast total revenue growth of 9% to 11% year over year. Parekh said the outlook assumes current global tariff rates and policies remain in place and that the macroeconomic outlook does not worsen.
The company expects foreign exchange to reduce the year-over-year total-company growth rate by roughly 2.5 percentage points sequentially from the June quarter to the September quarter. It also expects supply constraints to increase significantly and affect iPhone, Mac and iPad.
Cook said the supply limitations were primarily related to availability of advanced manufacturing nodes used for Apple’s system-on-chip production. He characterized the issue as a demand-forecast challenge rather than a supplier problem, saying demand for iPhone and Mac had exceeded Apple’s expectations.
Apple expects iPhone revenue growth in the September quarter to be in the mid-teens year over year. Services growth, excluding the additional foreign-exchange effect, is expected to be broadly similar to the June-quarter rate.
Gross margin is expected to range from 47% to 48%, including an anticipated benefit of about one percentage point from tariff refunds. Operating expenses are projected to be between $19.1 billion and $19.4 billion.
Memory costs remain a central concern. Cook said Apple paid more for memory in the March quarter than in the December quarter, significantly more in the June quarter than in March, and expects still-higher memory costs in the September quarter. He said the company had “reluctantly” raised prices amid what he called a “100-year flood” of memory-price increases.
Parekh said memory costs accounted for more than the full sequential decline in adjusted gross margin from the March quarter through the September-quarter midpoint of guidance, with partial offsets from carry-in inventory, lower costs for certain non-memory components and product mix.
AI, U.S. Manufacturing and Leadership Transition
Cook highlighted Apple’s planned Siri AI rollout, describing the updated assistant as private, based on personal context and integrated throughout the company’s platforms. He said developer and public-beta feedback had been strongly positive. Apple expects to offer iCloud+ upgrade options for users with heavier AI usage, though Cook said it was too early to provide a complete plan for recovering associated compute costs.
In Europe, Cook said Apple is working with regulators toward a potential Siri AI launch, while noting that the Mac version is not subject to the same regulations as iPhone and iPad. In China, Apple recently received approval to ship initial Apple Intelligence features and is working through that rollout, with further work required for Siri AI.
Apple also pointed to U.S. supply-chain investments, including a multiyear Broadcom agreement expected to exceed $30 billion and plans to produce Mac mini systems at its Advanced Manufacturing Center in Houston later this year.
The board declared a cash dividend of $0.27 per share, payable Aug. 13 to shareholders of record as of Aug. 10. During the quarter, Apple returned $33 billion to shareholders, including $25.8 billion in share repurchases and $4 billion in dividends and equivalents.
About Apple (NASDAQ:AAPL)
Apple Inc (NASDAQ: AAPL) is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.
Apple’s principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.
