Apple Reports Record Quarterly Revenue, Driven by Strong iPhone Sales

Apple Inc. has announced record quarterly revenue for its third fiscal quarter ending June 30, 2025, significantly exceeding analyst expectations. The company reported total revenue of $120.5 billion, representing a 12% increase compared to the same quarter last year. This impressive performance was largely driven by strong sales of its latest iPhone models, robust growth in services, and continued expansion into new technology sectors.

The company’s flagship product, the iPhone 15 series, launched late last year, contributed significantly to the surge in hardware sales. Apple sold approximately 88 million units during the quarter, a 15% increase year-over-year, fueled by consumer enthusiasm for upgraded camera systems, longer battery life, and enhanced AR (augmented reality) capabilities. The new models have resonated particularly well in key markets including the United States, Europe, and China.

Apple’s services segment, which includes the App Store, Apple Music, Apple TV+, iCloud, and other subscription services, grew 18% year-over-year to reach $25 billion in revenue. The steady increase in services revenue underscores Apple’s successful strategy to diversify beyond hardware sales and develop recurring income streams. This segment now accounts for more than 20% of the company’s total revenue.

CEO Tim Cook expressed confidence in Apple’s business model and future prospects during the earnings call. “Our commitment to innovation, seamless integration across our product ecosystem, and focus on customer experience continue to drive strong growth. We are excited about new technologies on the horizon, including advancements in augmented reality and healthcare,” Cook said.

Apple’s wearables and accessories category, including AirPods and Apple Watch, also showed notable growth, with revenue increasing by 14%. The company continues to capitalize on rising consumer demand for health and fitness-related technologies, which have become a significant part of its ecosystem.

The quarter’s results also reflect Apple’s ongoing investments in research and development, with the company increasing its R&D budget by 20% to nearly $30 billion annually. This funding supports development in emerging fields such as artificial intelligence, augmented reality, and next-generation silicon chips, which Apple hopes will fuel its growth for years to come.

Apple’s stock price responded positively to the earnings report, rising 2.7% in after-hours trading. Market analysts praised the company’s balanced approach to innovation and monetization. “Apple’s ability to combine hardware sales with growing services and wearables revenue creates a resilient business model,” said Jessica Patel, a technology analyst at Global Insights. “Their expansion into AR and health tech represents a significant growth opportunity.”

Looking ahead, Apple plans to expand its presence in emerging markets, including India and Southeast Asia, where smartphone adoption and digital services are growing rapidly. The company is also expected to launch its next-generation AR headset later this year, which could open up new revenue streams.

Overall, Apple’s latest quarterly results reaffirm its position as a dominant player in the technology sector, demonstrating strong consumer demand and successful diversification across products and services.