MacDailyNews presents live notes from Apple’s Q325 conference call

MacDailyNews presents live notes from Apple’s Q325 Conference Call with analysts starting at 2pm PT / 5pm ET today, July 31, 2025.

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Apple’s live conference call webcast will begin at 2pm PT / 5pm ET here.

Apple today posted record third quarter revenue of $94.0 billion, up 10 percent year over year, and quarterly diluted earnings per share of $1.57, up 12 percent year over year.

For the quarter, analysts’ consensus estimates called for Apple to report revenue of $89.54 billion and EPS of $1.43, both of which Apple beat handily.

Live notes in reverse chronological order:

• AAPL After Hours: $212.32, +$4.75 (+2.29%) @ 5:58:00 PM EDT

• End of conference call

• Cook: We’ve acquired around seven companies this year, not all AI-oriented; we are very open to MMA that accelerates our roadmap?
• Q: Mergers and acquistions?

• Cook: Thrilled with visionOS 26; we continue to be very focused on it
• Q: Vision Pro / visionOS 26 updates? More devices?

• Parekh: Yes, it will not be exponential growth, but it will grow notably due to investments in AI
• Q: CapEx increasing appreciably higher?

• Parekh: Q3 foreign exchange really had no impact on Q3 results; Q4 should see very small taliwind
• Q: How much of a benefit was currency in Q3?

• Cook: I would be careful about projecting based on the numbers from Q2 and Q3 because we’re uncertain of the tariff rates (also, last quarter, we had some build ahead, making the quarter unique). Volume will increase in holiday quarter, so will the tariff hit.
• Q: Tariff hit expectation, anything unique in the December quarter?

• Cook: It was primarily iPhone and Mac purchases, largely in the U.S.
• Q: 1-point pull forward due to tariff chatter?

• Cook: AI is one of the most profound technologies of our lifetime; what pieces of the chain are commoditized, I don;t want to talk about today because it would give away some pieces of our strategy
• Q: AI for edge devices? LLMs becoming a commodity?

• Cook: Quarter ended on the low end of the range
• Q: Inventory?

• Parekh: Sales driven by strength of the iPhone 16 family
• Q: iPhone activity?

• Cook reiterates that Apple has committed $500 billion over the next 4 years to invest in American production
• For other countries the vast majority of products are assembled in China
• The majority of iPhones sold in the U.S. has a country of origin of India; Vietnam for Macs, Apple Watches, and iPads
• Cook: Last quarter, the bulk of the tariffs were related to China
• Q: Supply chain strategy?

• Parekh: We had a very strong all-time quarterly record, it was broad-based with strong double digit growth around the world
• Q: Services?

• Cook: We have committed $500 billion over the next 4 years to invest in American production

• Cook: We are just estimating the cost and it increases quarter over quarter because sales volume is expected to increase (seasonal)
• Q: Tariff assumption of $1.1 billion in fiscal Q4?

• Cook: When you think about all that iPhone can do, it’s difficult to see a world where iPhone is not living in it. That doesn’t mean we aren;t thinking about other things as well, but the devices are likely to be complimentary to iPhone
• Q: Threats of new AI form factors where dependence on screen-based devices diminishes?

• Cook: Do not want to speculate
• Q: What if Google payments are disallowed legally?

• Parekh: Tariffs pull-ahead and demand and September quarter last year had the iPad launch (so, tough compare)
• Q: Overall revenue outlook? Conservative?

• Apple is reallocating a number of people to focus on AI; Cook: “We are putting all of our energy behind it.”
• Apple focused on personal AI and privacy; Apple will grow AI investment significantly
• Cook: We are making good progress on a more p[ersonalized Siri and we do expect to release the features next year
• Q: Siri situation?

• MacBook Air was top-selling laptop in Greater China and Mac mini was top-selling desktop
• Majority of customers buying iPhone in mainland China were new to the product
• iPhone had the top 3 models in urban China
• Install base in Greater China set new record
• Cook: Grew in Greater China by 4%, driven by an acceleration by iPhone and also Mac
• Q: What does Apple see in China market?

• Cook: We estimate pull forward of demand in April to be about 1 point of the 10 points due to tariff discussions
• iPhone 16 family upgrades grew significantly vs. iPhone 15
• Upgrades?

• Increasing CapEx investment significantly in AI and data centers
• Q: CapEx up notably year to date?

• Outlook assumes no new tariffs and continue Google default search payments: Apple expects revenue growth of high single digits; Service to grow YoY simialar to June quarter, 46%-47% gross margin, OpEx between $15.6B and $15.8B

• Net cash $31 billion
• $102 billion in total debt

• Mac and Apple Watch install bases hit new all-time highs
• Apple set all-time June quarter revenue ($89.54 billion) and EPS ($1.43) records
• Parekh recaps product revenue for each category:
– iPhone Revenue: $44.582 billion
– Mac Revenue: $8.046 billion
– iPad Revenue: $6.581 billion (difficult compare vs. launch of iPad Air and iPad Pro during Q324)
– Services Revenue: $27.423 billion
– Wearables, Home, and Accessories Revenue: $7.404 billion

• For September assuming current tariffs and no new tariffs, impact will be about $1.1 billion
• Cook: For June quarter, tariff hit was $800 billion

• Apple spikes, quickly settles below $210 as market realizes Cook didn’t retire 😘

• APPL After hours: $209.30, +$1.73 (+0.83%) @ 5:17:46 PM EDT

• Apple signed deal to invest in rare earth mining and recycling
• Cook covers new accessibility features for Apple OSes and apps
• Apple Store Online launched in Saudi Arabia
• App Store revenue grew double digits YoY setting a June quarter revenue record
• Apple Music turned 10 years old during Q3
• “F1 The Movie” is an unforgettable blockbuster
• Apple TV+ has the highest-rated content of any streamer
• Apple TV+ garnered 81 Emmy nominations
• Services Revenue: $27.423 billion
• Cook talks health – hearing aids on AirPods Pro, fall detection, heart monitoring, etc.
• Cook touts Vision Pro and visionOS 🙄
• June quarter record to users upgrading to Apple Watch
• Wearables, Home, and Accessories Revenue: $7.404 billion
• Cook calls iPadOS 26 with windowing system Apple’s biggest iPad OS update ever
• iPad Revenue: $6.581 billion
• Cook touts Mac Studio, Mac mini, and macOS 26
• Mac Revenue: $8.046 billion (driven by the strength of the M4 MacBook Air)
• Cook touts iOS 26
• iPhone Revenue: $44.582 billion

• 3 billionth iPhone shipped during Q325

• Cook: We believe our devices are the best for running Generative AI
• Cook: We are making good progress on a more personalized Siri – coming next year
• Apple is significantly growing its investment in AI
• Apple sees AI as one of the most profound in our lifetimes
• Cook discussed Apple Intelligence developments from WWDC in June
• Cook touts Liquid Glass

• Services set another quarterly revenue record
• Mac continued to see excellent results
• June quarter revenue records across the globe; double-digit iPhone, Mac, and Service growth
• earnings per share of $1.57, up 12 percent year over year
• Cook: Apple is proud to report a June quarter revenue record of $94.0 billion, up 10 percent year over year

• Apple CEO Tim Cook and CFO Kevan Parekh will speak on the call today

• AAPL After hours: $210.05, +$2.48 (+1.19%) @ 4:57:37 PM EDT
• AAPL After hours: $211.00, +$3.43 (+1.65%) @ 4:55:53 PM EDT

• Cook said Apple, which has thus far not engaged in the massive capital expenditures of its Big Tech rivals to pursue AI, is “significantly growing” its investments in artificial intelligence: “Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that’s at the heart of our AI strategy.”

• Apple has delayed the release of an AI-enriched version of Siri, its virtual assistant, but Cook said the company is “making good progress on a personalized Siri.”

• “We saw evidence in the early part of the quarter, specifically, of some pull-ahead related to the tariff announcements,” Cook told Reuters, though he also said the active user base for iPhones hit a record high in all geographies.

• In an interview with Reuters, Apple CEO Tim Cook said the company set seasonal records for upgrades of iPhones, Macs, and Apple Watches. He said Apple estimates about one (1) percentage point of its 9.6% of sales growth in the quarter was attributable to customers making purchases ahead of potential tariffs.

• Reuters: “Apple crushes Wall Street expectations as iPhone sales soar”

• AAPL After hours: $213.90, +$6.33 (+3.05%) @ 4:48:40 PM EDT
• AAPL After hours: $212.06, +$4.49 (+2.16%) @ 4:43:35 PM EDT