Apple Posts Record June Quarter Revenues
Apple revenues in Q2 2025 (fiscal Q3 2025) grew 10% YoY, reaching $94.0 billion, a Q2 record. This was the highest YoY growth in 14 quarters. Both hardware (8% YoY) and services (13%) grew at a healthy pace. iPhones were 47% of total revenues. Mac captured 9% of total revenues and was the fastest-growing segment. Services captured 29% of total revenues and recorded a new all-time high.
Commenting on the results, Varun Mishra, Senior Analyst at Counterpoint Research, noted, “Apple focused heavily on inventory clearance in Q2, especially in China. There were surprisingly steep discounts leading up to the 618 promotional period, particularly on Pro models. Shipments in the US were front-loaded in the quarter due to tariff uncertainties, but softened toward the quarter end. iPhone 16e drove sales in Japan, making it one of the fastest growing regions for Apple. The device also did well in the US. Emerging markets like MEA and India continue to show strong growth.”
Commenting on Mac, David Naranjo, Associate Director at Counterpoint Research, noted, “Mac grew supported by strong demand for MacBooks with M4 chipsets and typical back-to-school purchases. Overall, Mac revenues grew 15% year-over-year.”
Wearable, Home, and Accessories continued to decline as both Watch and AirPods revenues fell. The segment has been declining for two years, and revenues for Apple Watch have been declining for seven consecutive quarters. Lengthening replacement cycles and the absence of a new Apple Watch SE, which was one of the largest volume drivers, are the key reasons for the segment's decline. Newer health and AI features, design upgrades, and the launch of a new SE model are needed to revitalize the segment. A Watch SE can strategically help Apple tap consumers in emerging markets, where iPhones have been growing very strongly.
Apple Revenues by Product Categories
Source: Counterpoint Research Apple 360
Another key highlight of the quarter was Apple’s supply diversification to navigate tariff uncertainties. Prachir Singh, Senior Analyst at Counterpoint Research, noted, “Over 70% of US iPhone shipments in the quarter were made in India. Apple has significantly ramped up its production and exports from India. The strategy of satisfying US demand as much as possible from India and the rest of the world from China is working. There is also rapidly growing iPhone demand from within India, which needs to be catered to locally.”
Apple’s manufacturers have been expanding their capacities in India as well as expanding the component supplier ecosystem. We may see active participation of Apple’s suppliers in the recently launched Electronics Components Manufacturing Scheme (ECMS). This is an incentive to bolster the domestic component manufacturing ecosystem in India.
There have also been recent developments around the India-US trade deal, with the US imposing 25% tariffs on India. Prachir Singh further comments, “The US-imposed tariff situation remains volatile, and eventually, what we have seen critical items such as smartphones were and possibly will be exempt. So this is more of a negotiation tactic, putting pressure at the right points to achieve leverage in overall trade negotiations, which would be on completely different items. While it will pressure India's electronics manufacturing, policies like production-linked incentive (PLI) are now crucial to help India compete on cost with rivals like China and Vietnam, especially as the PLI scheme enters its final year. For now, it's a wait-and-see situation which is yet to be finalised.”
About Counterpoint Research
Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.
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Author
Varun Mishra
Varun is a Principal Analyst at Counterpoint Research based out of Gurgaon. In Counterpoint, he closely tracks mobile devices and ecosystem with a focus on Apple. He started his career as a Consultant with Infosys Limited where he was able to identify strategic avenues for business growth through deep research and analysis of markets and companies in various domains. He holds a Master of Business Administration in Marketing from Institute of Management Technology, Ghaziabad and a bachelor's degree from Coventry University, UK.
Tarun Pathak
Tarun is a Research Director with Counterpoint Research, based out of Gurgaon (near New Delhi). Tarun has 10 years of work experience with a key focus on the evolving mobile device ecosystem with specialties in Emerging Markets. He understands specific mobile industry nuances, helping clients to navigate through the rapidly changing technological trends. As a Telecom Analyst he has been quoted extensively by the leading media platforms. Tarun holds a Post Graduate Diploma in Management, specializing in International Business from the Amity International Business School and is a graduate in Physical Sciences from Jammu University, Jammu in the northern Indian state of Jammu & Kashmir.