Apple’s third-quarter earnings have topped Wall Street expectations, driven by strong sales of iPhones and services revenue growth. The company reported a 13% year-over-year increase in iPhone sales, its largest quarterly revenue growth since December 2021.
CEO Tim Cook attributed the success to various factors, including a Chinese subsidy for some devices, which helped boost sales in the region. Apple also reported significant growth in its services business, with a 13% increase in revenue to $27.42 billion.
However, the company faced challenges in other areas, such as iPad sales and its wearables unit, which declined 8.64%. Cook emphasized that Apple is committed to investing in artificial intelligence (AI) and plans to “significantly grow” its AI investments.
The company’s AI strategy includes embedding AI across its devices, platforms, and operations. Cook stated that AI is “one of the most profound technologies of our lifetime” and that Apple is open to mergers and acquisitions (M&A) that accelerate its roadmap.
Despite some uncertainties in the market, Apple’s strong performance has sent shares higher in after-hours trading. The company’s revenue growth and profit topped expectations, with earnings per share reaching $1.57 and net income totaling $24.43 billion.
Source: https://www.cnbc.com/2025/07/31/apple-aapl-q3-earnings-report-2025.html