Apple's Challenges for Q3 2025: AI Growth and the Trillion-Dollar iPhone

Apple's challenges in the third quarter of 2025 include the rise of artificial intelligence and the shipment of the trillionth iPhone. During this period, the company held an earnings conference for the financial quarter (which corresponds to the calendar second quarter of 2025), exceeding expectations and earning $94 billion. CEO Tim Cook and CFO Kevin Parikh shared data on device sales, tariffs, and other aspects of the business.

Regarding device popularity, the iPhone 16 models proved to be more in demand than the iPhone 15 from last year. According to Cook, sales of the iPhone 16 increased by "significant double digits" compared to the previous model, and these devices became popular among users upgrading their smartphones. The company set a record for the number of upgrades in the June quarter, which, according to Cook, happened due to the strength of the product.

A unique achievement was the shipment of the trillionth iPhone since the device's debut in 2007. Regarding artificial intelligence, Cook noted that Apple is actively investing in this technology and aims to accelerate its development. He emphasized that AI is one of the most profound technologies in our lives and the company is allocating significant resources to its development, reallocating employees to work in this area. At the same time, he mentioned that there are currently no specific news regarding product launches in the field of artificial intelligence.

As for tariffs, Cook explained that about 1% of the 10% sales growth can be attributed to consumers purchasing more products before tariffs were implemented. According to him, the company has already seen the first signs of such purchases in the early months of the quarter. Tariffs in the June quarter cost Apple about $800 million, and the impact of these tariffs could reach up to $1.1 billion in the September quarter. To minimize the negative impact of tariffs in the future, the company plans to optimize its supply chain and ramp up activities in the United States.

Regarding services, their revenue in the third quarter reached a record $27.4 billion, surpassing last year's figures ($24.2 billion). Notably, the number of views on Apple TV+ increased by double digits year-over-year. Revenue from the App Store also demonstrated double-digit growth, while cloud services set a new record. Paid subscriptions and accounts increased in double digits, and the company currently has over a billion active paid subscriptions across all services.