Apple Reports 10% Revenue Surge, Driven by iPhone 16 Series and China Sales

Apple Inc. reported its third-quarter earnings for the fiscal year 2025, with total revenue reaching 94.036 billion dollars, marking a 10% year-over-year increase. This performance surpassed market expectations of 89.53 billion dollars. The net profit stood at 23.43 billion dollars, with a 9% year-over-year increase, and earnings per share of 1.57 dollars, exceeding the anticipated 1.43 dollars. The strong performance was driven by a robust recovery in iPhone sales, sustained growth in service revenues, and adjustments in the supply chain and policy benefits.

The iPhone segment generated 44.58 billion dollars in revenue, a 13% year-over-year increase, significantly outperforming the expected 40.22 billion dollars. This surge was primarily due to the strong market performance of the iPhone 16 series. The CEO highlighted that the iPhone 16 series sales exceeded those of the iPhone 15 from the previous year, particularly driven by double-digit growth in the demand for upgrades from existing users.

China played a pivotal role in this growth. The Greater China region reported a 4.4% year-over-year increase in revenue to 15.37 billion dollars, reversing a two-quarter decline. The iPhone 16 Pro series, benefiting from government subsidies on digital products, became the best-selling model during the "618" shopping festival. The CEO acknowledged that government subsidies on certain Apple devices had a positive impact on sales.

In other product categories, Mac revenue reached 8.046 billion dollars, a nearly 15% increase from the previous year's 7.009 billion dollars, making it the fastest-growing product line. In contrast, iPad revenue declined by 8% to 6.58 billion dollars, and wearable device revenue decreased by 8.6% to 7.4 billion dollars.

The service sector continued to be a strong performer, generating 27.42 billion dollars in revenue, a 13% year-over-year increase. The growth was driven by an increase in iCloud subscribers and double-digit growth in App Store revenue, which served as the primary engine for profit growth. This performance exceeded analyst expectations, which had projected 26.8 billion dollars in service revenue.

Apple's total sales cost for the third quarter was 50.318 billion dollars, a 9% increase from the previous year's 46.099 billion dollars. Total operating expenses for the quarter were 15.516 billion dollars, up from 14.326 billion dollars the previous year.

The company's board of directors announced a cash dividend of 0.26 dollars per share to be distributed to common stock shareholders. This dividend will be paid on August 14, 2025, to shareholders of record as of the close of business on August 11, 2025.

Analysts generally hold a positive outlook on Apple's medium to long-term prospects. The company's "buy" rating was maintained, with a target price of 251 dollars, citing the dual engine of service business and hardware innovation as key drivers for sustained growth.