A few days ago, Apple released the results for its 2025 fiscal second quarter (which ran from December 29, 2024, to March 29, 2025) and held a call with analysts to discuss the results. The fiscal first quarter is always Apple’s best quarter of the year because it includes holiday sales. Three years ago, Apple set a new Q2 record of $97.3 billion. This year, the quarterly revenue was $95.4 billion, which was 5% better than this time last year and was Apple’s second-best Q2 ever. If you want to get all of the nitty-gritty details, you can listen to the audio from the conference call on this page of Apple’s website, or you can read a transcript of the call prepared by Jason Snell of Six Colors. Apple’s official press release is here. Here are the items that stood out to me.
iPhone
- iPhone revenue for the quarter was $46.8 billion, up 2% from last year. The all-time high for Q2 was $51.3 billion in iPhone sales in 2023 Q2.
- As Jason Snell of Six Colors notes, “the truth is that iPhone revenue has been essentially flat for the last three years. Not since fiscal 2021 has there been multiple quarters of double-digit growth.” Of course, the iPhone still generates tons of revenue, and no other company has a product like the iPhone.
- Because of the Trump tariffs, Apple plans for the majority of iPhones sold in the U.S. in 2025 Q3 to come from India instead of China.
- When asked about why Apple has had to delay the Apple Intelligence feature that will make Siri do more with your personal data, Apple CEO Tim Cook said that “we just need more time to complete the work so they meet our high-quality bar, and there’s not a lot of other reason for it. It’s just taking a bit longer than we thought. But we are making progress and we’re extremely excited to get the more personal Siri features out there.”
iPad
- iPad revenue for the quarter was $6.4 billion, up 15% from last year. The all-time high iPad revenue in any quarter was 2023 Q1, when revenue was $9.4 billion. The all-time high iPad revenue in a Q2 was 2021 Q2, when revenue was $7.8 billion.
- With the growth this past quarter, Apple has now had four quarters in a row of iPad revenue growth, which comes after growth being down in nine of the ten prior quarters. Note that Apple did not introduce any new iPads in all of calendar year 2023: after introducing a new iPad and iPad Pro on October 18, 2022, the next iPad announced by Apple was on May 7, 2024, when Apple introduced a new iPad Air and new iPad Pro. Thus, it is not surprising that iPad revenue growth stalled before 2024, and with Apple now introducing new iPads more frequently, iPad revenue is getting back on track.
- Because of the Trump tariffs, Apple plans for the majority of iPads sold in the U.S. in 2025 Q3 to come from Vietnam instead of China.
Other
- Apple’s service revenue was an all-time record of $26.6 billion, up 12% from this time last year. This is a huge category that includes money that Google pays Apple for search, the App Store, Apple Pay, services like Apple TV+ and Fitness+, iCloud subscriptions, and more.
- Apple continues its efforts to be more environmentally sustainable, and has cut its emissions 60% since 2015. Cook explained: “Today we’re using more clean energy across our operations and more recycled materials in our products than ever. We have worked with suppliers to bring 17.8 gigawatts of renewable electricity online. We’re also saving billions of gallons of fresh water and redirecting millions of metric tons of waste from landfills. All of this will help us make important progress towards our goal of carbon neutrality across our supply chain and the life cycle of our products by 2030.”
- Apple said that the Trump tariffs had only a minimal impact on Q2, in part because Apple was able to optimize its supply chain and inventory—which I presume means importing a lot of items just before the tariffs began. Apple warned that it does not know the precise impact that these tariffs will have on 2025 Q3, in part because of all of the uncertainty, but as a rough estimate, it could add $900 million to Apple’s costs.
- Apple noted that many large organizations continue to invest in Apple products. For example, KPMG is now providing iPhone 16 to all U.S. employees.