Apple Reports Record Q3 Earnings: iPhone Surge, AI Push, and Tariff Challenges Highlight Investor Call

Apple has posted a record-setting June quarter, with CEO Tim Cook and CFO Kevan Parekh sharing insights into the company’s performance and future direction during the latest investor call. From a strong iPhone performance to growing AI investments and tariff-related pressures, here are the key takeaways.

iPhone Sales Power Record Quarter

• iPhone revenue grew 13% YoY, driven by a record number of upgraders and strong demand for the iPhone 16 lineup.

• Cook revealed a historic milestone: 3 billion iPhones shipped since the first model debuted in 2007.

AI: The Heart of Apple’s Future

• Cook called AI “one of the most profound technologies of our lifetime” and confirmed a significant increase in AI investment.

• Highlighted on-device models and Private Cloud Compute, core to Apple Intelligence, ensuring privacy and personalization.

• Upcoming Siri enhancements, originally delayed, are still on track for next year.

This follows WWDC 2025 announcements introducing the Liquid Glass design and year-based OS naming (iOS 26, macOS Tahoe 26).

Tariffs Pose a Growing Cost

• Apple incurred $800M in tariff-related costs this quarter.

• Forecast: $1.1B in tariff costs for the September quarter if policies remain unchanged.

• To offset risks, Apple is expanding manufacturing in India, supported by Foxconn’s $1.5B investment.

Other Product & Services Highlights

• Mac revenue up nearly 15%, thanks to the new M4 MacBook Air.

• Services hit an all-time high: $27.4B revenue, over 1B paid subscriptions across Apple platforms.

• iPad and Wearables dipped due to tough YoY comparisons from prior major launches.

What’s Next?

• Q4 revenue projected to grow mid-to-high single digits.

• Apple’s board approved an additional $100B share buyback, signaling confidence in future growth.