Apple’s revenues in Q3 2025 (Q4 2025 of its financial year) grew 8% YoY, reaching $102 billion. This was the first time revenues crossed the $100-billion mark in a September quarter, resulting from a strong performance of both hardware (5% YoY) and services (15% YoY) segments. Hardware revenue was a September quarter record while services revenue was an all-time record. Mac was the fastest-growing hardware segment, followed by iPhone.

Commenting on iPhone’s Q3 numbers, Senior Analyst Varun Mishra noted, ”The iPhone 17 series is performing better than the iPhone 16 series, with the base version doing well across regions due to a very strong value proposition. The iPhone 16e has further added width to the portfolio. We saw 9% YoY growth in shipment volumes, which successfully offset the slight decline in average selling price (ASP) due to the broader product mix. This positive momentum is supported by strong growth in emerging markets, a trend we expect to continue.”

Mac was the fastest-growing hardware segment. Associate Director David Naranjo said, “Mac delivered the fastest growth among Apple’s hardware categories this quarter, driven by a combination of refreshed products and improving demand from the premium consumer and commercial segments. Apple’s strategy to lean into performance-first upgrades with its M-series roadmap is clearly resonating, especially as AI-capable workflows become more mainstream across creative and productivity applications. This positions Mac well heading into 2026 as the upgrade cycle strengthens and Apple continues to expand its on-device AI capabilities.”

Within Watch, a much wider portfolio with Series 11, Ultra and SE 3 drove volume growth. The SE 3, in particular, performed significantly better than the SE 2 because the feature gap between the SE and the standard Watch series has never been narrower, making it a compelling value proposition.

The services segment continued its double-digit growth for the ninth consecutive quarter. Its revenues also crossed $100 billion for the first time for a financial year. Commenting on the milestone, Research Director Tarun Pathak noted, “Services have emerged as one of the anchors for Apple’s revenue growth and margins. Apple’s ecosystem becomes so powerful with services integrated at multiple touchpoints of core use cases like storage, payments, insurance and entertainment. Our consumer research shows a strong attach rate for services among iPhone users, which has been growing year-on-year. Further, as iPhone penetration grows in emerging markets, services growth will follow.”

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