Apple held its earnings call for the fourth fiscal quarter (third calendar quarter) of 2025 today. With quarterly revenue of $102.5 billion, Apple set a new September quarter revenue record, beating analyst expectations. Apple CEO Tim Cook and Apple CFO Kevan Parekh provided insight into iPhone sales, holiday quarter expectations, and more.
We’ve rounded up the most interesting takeaways from the call.
iPhone 17 Sales
Cook said that demand for the iPhone 17 models is “off the chart.” Traffic in stores is up significantly, and Cook said that consumer reception is “very strong.” Apple set a September quarter record for upgraders.
iPhone supply was constrained during the quarter, and several iPhone 17 models are still constrained. Cook said Apple is working hard to fulfill all the orders that it has.
When asked why the iPhone 17 was doing so well, Cook said the following:
I think it’s all about the product. The product lineup is incredibly strong or strong as ever. The 17 Pro is the most pro phone we’ve ever done. It’s incredible. And the design sings. The iPhone air feels so thin and so light in your hand, it feels like it’s going to fly away. And then the 17 phone is an incredible value, and takes several of the features that were reserved for pro before and brings them down to the consumer lineup. So overall, strongest iPhone lineup ever, and it’s resonating around the world.
iPad
Though Apple refreshed the iPad lineup with the iPad Pro, many other iPads haven’t had an update as of late. iPad sales were flat, with $6.95 billion in revenue.
Half of customers who purchased an iPad during the quarter were new to the product.
Mac
Mac sales were up, thanks to the launch of new MacBook Air models this year. Mac revenue was $8.7 billion, up from $7.7 billion last year. The Mac install base reached a new all-time high.
Apple said next quarter’s Mac sales won’t be as impressive because of an “extremely difficult compare.” Last year, Apple launched several Macs late in the year, but this year the company only released the M5 MacBook Pro.
Wearables, Home and Accessories
Apple’s wearables category includes the Apple Watch and Vision Pro. Sales were slightly down at $9.01 billion compared to $9.04 billion last year.
Services
Apple’s Services segment hit a new all-time revenue record, reaching $28.8 billion, up from $25 billion in the year-ago quarter.
Services set revenue records in Americas, Europe, Japan, Rest of Asia Pacific, and a September quarter record in Greater China. Payment services hit an all-time revenue record and there was double-digit growth on Apple Pay active users.
Services revenue has surpassed $100 billion for the year, up 14 percent.
Siri Revamp
Apple is still on track to release an upgraded version of Siri next year, according to Cook. Apple is also planning for more partnerships like the ChatGPT integration in Apple Intelligence.
AI
Parekh said that Apple is “significantly increasing” its investments in AI, with operating expenses between $18.1 and $18.5 billion expected.
Cook said that Apple is continuing to develop its Apple foundation models, and several are in development. But he also said that Apple continually looks at the market and is open to pursuing an acquisition if it will advance the company’s roadmap.
China
Despite strong iPhone sales, revenue in China was down significantly. Cook said that China is expected to return to growth in the December quarter because of the reception to the iPhone 17.
Revenue in China was $14.5 billion, down from $15 billion last year, and below analyst expectations of approximately $16.4 billion.
Tariffs
Apple said that it had $1.1 billion in tariff-related costs in Q4 2025. Apple expects $1.4 billion in tariff-related costs next quarter, assuming that nothing changes. It does include the recent tariff change on goods imported from China, which dropped to 10 percent from 20 percent.
December Quarter
Apple CEO Tim Cook said that total company revenue would grow 10 to 12 percent year over year in the December quarter. iPhone revenue is expected to grow double digits, and Apple is projecting that it will have its best December quarter ever.
