Apple’s Q2 2025 Results
Apple (transcript, MacRumors):
The Company posted quarterly revenue of $95.4 billion, up 5 percent year over year, and quarterly diluted earnings per share of $1.65, up 8 percent year over year.
[…]
The board of directors has also authorized an additional program to repurchase up to $100 billion of the Company’s common stock.
Revenue was $95.4 billion, up 5% versus the year-ago quarter. Mac revenue was up 7%, iPad revenue up 15%, iPhone revenue up 2%, and Services revenue up 12%. The Wearables/Home/Accessories category was down 5%.
Things are weird in Apple-land. Legal judgments are piling up in unexpectedly bad ways. Tariffs threaten large parts of Apple’s business. This year’s banner Apple Intelligence features got delayed indefinitely.
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Speaking of doldrums: iPhone revenue was up 2%, and that qualifies as good news, given that it was down one percent last quarter. But 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. To be sure, the iPhone is still a money machine—it’s generated $200 billion in revenue while spending the last year in the doldrums. But if you’re a growth-obsessed investor, it’s a little troubling.
In fact, Apple recorded a new all-time high for gross margin on services this quarter, at 75.7%. That figure is based on costs of $6.46 billion on sales of $26.64 billion.
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The Services business includes revenues from things like iCloud, Apple Music, Apple TV+, AppleCare, and more. However, a big chunk is also derived from Apple’s cut of App Store in-app purchases, which ranges from 15-30% on digital goods purchases and subscriptions.
It also includes Google’s TAC payments for searches initiated in Safari.
Show me a retail store with a 76% gross margin.
Otherwise, people can STFU about App Store being like a retail store.
No one even asked about the material impact of Apple being required to immediately change the App Store guidelines (in the US) to allow unfettered link-outs to the default web browser to make purchases and sign up for subscriptions. You’d think that would be a question.
Previously:
- Court Orders Apple to Comply With Anti-Steering Injunction
- Apple Delays “More Personalized Siri” Apple Intelligence Features
- Apple’s Q1 2025 Results
- Apple to Defend Google Revenue Sharing Agreement
- Apple’s Q2 2024 Results
2 Comments RSS · Twitter · Mastodon
> iPhone revenue was up 2% …
How much of this is due to people rushing to buy iPhones, Macs, etc. before the prices increase due to tariffs?
To Gruber's comment, earnings calls aren't open Q&A. They only take questions from vetted folks, everyone else is muted. It's a dog and pony show and not much else. If no one asked about the contempt judgment it's because Apple didn't want anyone to ask about it. Apple's statement that they will comply while appealing is the only thing they would've said if asked anyway.
iPhone sales are flat because the newer models have Gucci prices. That only attracts the Apple die hards who have to have the latest and greatest. The lower end phones don't have the same margin and are in a more price sensitive segment of the market. Those folks will use their phones until they die because they couldn't care less about things like Apple Intelligence or the latest and greatest camera optics.
Apple has stagnated as far as innovation goes and has chosen to milk their current cash cows dry rather than seriously invest in better services, products or even fix how broken their OS software is. I'll need a new laptop soon as mine is starting to have problems with its SSD and at least one USB-C port. The question is whether I'll get another MacBook or move to Linux. Until now the apps and commited devs are why I've stayed so long but with more apps I use being sold to groups like Applause (Bartender, now Strongbox) that bind is loosening.
