Apple(US:AAPL) Zhong Guo Jing Ying Bao·2025-08-01 13:03Core Insights - Apple reported strong overall performance for Q3 FY2025, with record revenue for the quarter [1] - Revenue from the Chinese market returned to growth, with iPhone revenue increasing by 13.45% year-over-year [1][4] - The company faced pressure from tariff policies, impacting future performance [8][9] Financial Performance - Total revenue for the quarter reached $94.04 billion, a 10% year-over-year increase [2] - iPhone revenue was $44.58 billion, up 13.5% year-over-year, driven by strong sales of the iPhone 16 series [2][3] - Mac revenue was $8.05 billion, reflecting a 14.8% increase, attributed to the performance of the new MacBook Air [2] - Service revenue was $27.42 billion, showing a growth of nearly 13.3% [2] Product Performance - iPad sales were $6.58 billion, down 8.1% year-over-year due to a high base from the previous year [3] - Wearable devices, home, and accessories revenue was $7.4 billion, down 9% year-over-year [3] - The iPhone 16 series saw significant demand, particularly in the context of existing users upgrading their devices [2][3] Market Dynamics - Revenue from the Greater China region was $15.369 billion, a 4.35% increase year-over-year, marking a turnaround from previous declines [4][5] - The growth in China was supported by the "national subsidy" policy and promotional strategies during the "618" shopping festival [6][9] - Apple's aggressive pricing strategy for the iPhone 16 Pro helped it meet subsidy thresholds, enhancing market performance [6][9] Tariff Impact - Approximately 1% of the 10% sales growth in Q2 FY2025 was attributed to consumers purchasing more products to avoid tariffs [8] - Apple incurred $800 million in tariff-related costs in Q2 and expects this to rise to $1.1 billion in Q3 [9] - The company is optimizing its supply chain to mitigate tariff impacts, with a significant shift in smartphone sourcing from China to India [10]