Fiscal Q3 was spectacular for the iPhone, Apple, and its Services segment

Apple’s sales rose in every geographic region it tracks

Wearables, Home and Accessories, a wide ranging segment that includes the Apple Watch, the Vision Pro spatial computer, and the AirPods, saw quarterly revenue decline from last year’s $8.10 billion to this year’s $7.40 billion, a decline of 8.64%. The importance of Apple’s Services unit continues to show each quarter. For the fiscal third quarter, Settings took in $27.42 billion in revenue topping Wall Street’s consensus of $26.80 billion. Last year Services revenue during fiscal Q3 was $24.21 billion. this works out to a 13.3% gain for the sector during the latest quarter.

A big crows hands outside an Apple Store before the release of an iPhone model. | Image credit-Apple

Sales rose in every geographical reason. In the Americas Apple generated $41.20 billion in revenue for a gain of 9.34%. Sales in Greater China rose from last year’s $14.73 billion to $15.37 billion, up 4.34%. Sales rose a strong 20% in the rest of the Asian Pacific region for the fiscal third quarter to $7.67 billion. Sales of $24.01 billion were recorded in Europe, up 9.73% on an annual basis. Fiscal Q3 revenue in Japan came to $5.78 billion from the $5.10 billion reported last year, a 13.3% jump in revenue.

For the fiscal third quarter, Apple reported revenue of $94.04 billion comfortably beating Wall Street’s estimate of $89.53 billion. The 9.63% year-over-year increase was the largest growth in quarterly revenue since 2021. Net profits of $23.43 billion translated into earnings per share of $1.57. That topped Wall Street’s guess of $1.43 by a healthy margin to say the least. The year-over-year gain in earnings per share came to 12.14%.

During the regular trading session, Apple’s shares declined $1.48 or .71% to $207.57. In after hours trading after the earnings report was released, Apple shares rose $3.61 or 1.74% to $211.18. The tech giant lost its title of the most valuable U.S. public company to AI chip designer NVIDIA at various times last year into 2025. Currently, Apple has a valuation of $3.1 trillion while NVIDIA’s market cap comes to $4.34 trillion.

Kevan Parekh, Apple’s CFO, said, “We are very pleased with our record business performance for the June quarter, which generated EPS growth of 12 percent.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.”

Cook said, “It’s difficult to see a world where iPhone is not living in it”

Apple CEO Tim Cook weighed in with his view of the quarter. “Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment. At WWDC25, we were excited to introduce a beautiful new software design that extends across all of our platforms, and we announced even more great Apple Intelligence features.

Cook also attributed the rise in iPhone revenue to the higher popularity of the iPhone 16 series compared to the previous iPhone 15 line. The executive said that iPhone 16 sales were up “strong double digits” compared to its predecessor’s sales. Cook called AI “one of the most profound technologies of our lifetime,” and said that dedicated AI devices won’t replace the iPhone and are more likely to be a companion to its smartphone. Cook said during the earnings call, “It’s difficult to see a world where iPhone is not living in it.”

During the earnings call on Thursday evening, Tim Cook said Apple paid $800 million during the quarter due to tariffs. That actually was $100 million less than the $900 million Apple estimated in May that it would have to pay during fiscal Q3. For the current fiscal fourth quarter, assuming no changes, Cook said Apple would have to pay $1.1 billion in additional costs related to tariffs.