Apple Q3 2025 Earnings: Revenue Expected to Rise 4.2%

Apple Inc. is scheduled to release its Q3 FY25 earnings report on July 31, with analysts forecasting a 4.2 percent year-on-year revenue increase, reaching US$89.34 billion for the April–June quarter.

The growth, despite macroeconomic headwinds, highlights the company’s strategic resilience. Apple continues to navigate several key challenges, including U.S. tariffs on foreign-made electronics, rising competition in China, and delays in its AI strategy rollout. To mitigate tariff risks, Apple has shifted part of its iPhone production to India. Analysts estimate the financial impact of tariffs this quarter to be under US$900 million, significantly lower than initial projections.

Key Highlights

$89.34B revenue forecast for Q3 FY25, up 4.2% YoY
iPhone sales up 2.2%, China demand strong
AI rollout delays remain a concern for market positioning

iPhone sales are expected to grow by 2.2 percent, aided by strong performance in China. According to Counterpoint Research, Apple’s China sales rose 8 percent during the quarter, supported by increased demand during the 618 shopping festival.

While iPhone demand holds steady, other hardware categories are projected to witness slower growth. However, Apple’s services segment is set to expand, expected to contribute 10.7 percent of total revenue, according to LSEG estimates. This growth reaffirms Apple’s pivot toward high-margin service offerings.

Also Read: Apple to Shut First China Retail Store on August 9

Despite trailing behind competitors in AI integration, analysts are watching for signs of a more aggressive AI strategy, which could shape the company’s long-term innovation narrative.