In today’s earnings call, Apple CEO Tim Cook noted that Apple had sold its three billionth iPhone. That’s a genuinely boast-worthy figure. While the quarterly earning statement for the three months ending on 28 June 2025 revealed some good news, it wasn’t all positive.
[Editor’s note: All values in this article are in US dollars]
Overall sales for the quarter were up by over $5B compared to the same period last year while year to date sales were up by $9B. Almost half entire quarterly sales jump can be attributed to the iPhone with sales for the quarter at $44.5B from $39.2B.
iPad sales, however, were down by about $550M for the quarter even though they’re up overall for the year. Wearables, home and accessories, which covers the Apple Watch, AirTags, AirPods and other miscellaneous products was down by a similar amount.
Mac sales were up by about $1B.
While all that evens out from quarter to quarter, what we see is that Apple’s Services business which includes iCloud, Apple Music, News+, Games, Apple TV+ and other digital services grew by $9B compared to the same quarter last year and by $17B when we look at the year to date number.
That makes Services Apple’s second largest revenue source after the iPhone.
Apple doesn’t break out country-based figures in it reports. Australia is bundled into the “Rest of Asia Pacific” region which saw significant growth from almost $6.4B last year to about $7.7B. Apple did take a hit in Europe, presumably on the back of regulatory issues Apple faces in that region.
Overall gross margin, the difference between the sales and the cost of sales, is at $43.7B. Apple has been able to invest more than 20% of the gross margin back into research and development – presumably a lot of that is going towards AI research so that Apple Intelligence can catch up with its rivals. But there is also continual development of Apple Silicon, the long-awaited folding iPhone and the rumoured Apple Home Hub (if that’s what it ends up being called).
While most of the news for Apple was positive in this report, iPad sales and the European market pose some headaches.
Anthony is the founder of Australian Apple News. He is a long-time Apple user and former editor of Australian Macworld. He has contributed to many technology magazines and newspapers as well as appearing regularly on radio and occasionally on TV.