Core Viewpoint - Apple Inc. reported a stronger than expected third quarter, surpassing estimates and showing growth in products and services, raising questions about its competitive position in the tech industry [1][3]. Financial Performance - Apple achieved an "unbelievable quarter," with significant acceleration in total company revenue growth, iPhone revenue growth, and Mac revenue growth, defying traditional seasonal trends [3][4]. - The Services segment exceeded expectations and reached an all-time high, contributing to the overall strong performance [6][11]. - Despite facing $800 million in tariff costs, Apple managed to grow its gross margin by 20 basis points year-over-year to 46.5% [10]. Market Position and Competitors - Analysts noted that Apple's operating margin expansion is lagging behind competitors, and the company is spending less on capital expenditures, which may hinder its position in the AI race [7]. - Year-over-year revenue growth rates for the June quarter were reported as follows: Apple +10%, Amazon +13%, Alphabet +14%, and Meta +22% [9]. Analyst Ratings and Price Targets - JPMorgan maintained an Overweight rating and raised the price target from $250 to $255 [8]. - Needham maintained a Hold rating with no price target [8]. - Rosenblatt maintained a Neutral rating and raised the price target from $217 to $223 [8]. - Bank of America maintained a Buy rating and raised the price target from $235 to $240 [8]. Future Outlook - Analysts are monitoring the potential of the upcoming iPhone 17 cycle and the implications of the DOJ vs. Google lawsuit [4]. - There is optimism regarding the strength in iPhone units as the company approaches a form factor change in September 2025, with increased focus on AI potentially setting up a strong 2026 iPhone cycle [12].

Since I downgraded Apple Inc. ( AAPL ) to a sell rating in April 2025, concerning about its China iPhone sales growth. Since then, its stock price has significantly underperformed the S&P 500 Index ( SPX ) return. IAnalyst’s Disclosure:I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business ...

Apple Inc. (NASDAQ: AAPL ) beat estimates for its bottom and top line for its third fiscal quarter on Thursday, which was mainly due to the iPhone maker seeing strong growth momentum in bothAnalyst’s Disclosure:I/we have a beneficial long position in the shares of AAPL, GOOG, META, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relatio ...

Core Insights - Apple Inc. reported strong third-quarter fiscal 2025 results, exceeding revenue and earnings estimates with a revenue growth of 10% year over year to $94 billion and earnings per share of $1.57, up 12.1% from the previous year [1][3] - The company achieved double-digit growth in its iPhone, Mac, and Services segments, with the installed base of active devices reaching an all-time high [1][3] Financial Performance - iPhone sales increased by 13% year over year to $44.6 billion, driven by strong demand for the iPhone 16 [4] - Services revenue, which includes iTunes, Apple Music, iCloud, Apple Pay, and Apple Care, rose 13.2% year over year to a record $27.4 billion [4] - Mac sales grew by 15% to $8.05 billion, while iPad sales declined by 8% to $6.58 billion [4] - Revenues from Wearables, Home, and Accessories fell by 8.6% to $7.4 billion [4] Future Outlook - For the ongoing fiscal fourth quarter, Apple expects "mid to high-single digit" sales growth, although it faces significant tariff-related costs, estimated at $1.1 billion for the fourth quarter [5] Growth Strategy - Apple is significantly increasing its investments in AI, reallocating staff, and exploring acquisitions, including interest in acquiring AI search startup Perplexity [6] - The company aims to roll out a more personalized Siri by 2026, although it faces criticism for lagging behind competitors in AI innovation [6] ETFs in Focus - Several ETFs have significant allocations to Apple, including: - Global X PureCap MSCI Information Technology ETF (GXPT) with a 16.7% share of Apple [2][7] - Vanguard Information Technology ETF (VGT) with a 13% share [2][8] - MSCI Information Technology Index ETF (FTEC) with a 13.1% share [2][10] - iShares US Technology ETF (IYW) with a 12.9% share [2][11] - iShares Top 20 U.S. Stocks ETF (TOPT) with a 12.2% share [2][12]

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This was a surprise quarter on many fronts. Apple ( AAPL ) posted revenue of $94.0 billion for its 2025 third quarter that ended on June 28, 2025. This was significantly higher than the consensus estimate of $89.16I am an investor with over 7 years of experience in the financial markets. Currently pursuing an MBA from the University of Illinois at Urbana-Champaign, where I specialize in Finance and Marketing, my academic background has equipped me with a strong foundation in business strategy, financial ana ...

NEW YORK, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Apple Inc. (NASDAQ: AAPL) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Apple, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases-investigations/apple-inc-class-action-lawsuit. Investors have until August 19, 2025, to ask the Court to be appoint ...

Group 1: Apple Performance - Apple reported fiscal third-quarter earnings per share of $1.57, exceeding the projected $1.43 [2] - Revenue increased nearly 10% to $94 billion, surpassing the estimate of $89.2 billion [2] - The Services segment achieved a record revenue of $27.4 billion, accounting for nearly 30% of total revenues [2] Group 2: Analyst Reactions to Apple - BofA Securities raised its price target for Apple to $240 from $235, maintaining a Buy rating due to stronger-than-expected results [3] - Morgan Stanley also increased its target to $240 from $235, citing better-than-expected performance across products and services [3] - Barclays modestly raised its target from $173 to $180 [3] Group 3: Amazon Performance - Amazon reported $168 billion in revenue and $19.2 billion in profit for the second quarter, both exceeding Street estimates of $162 billion and $17 billion [4] - AWS cloud business revenue grew 18% to $30.87 billion, meeting expectations but lacking acceleration compared to competitors [4] Group 4: Analyst Reactions to Amazon - Barclays significantly raised its price target for Amazon to $275 from $240, suggesting AI could enhance AWS growth [5] - BofA Securities increased its target to $272 from $265, highlighting a 12% year-over-year growth in Amazon's retail business [5] - DA Davidson raised its target to $265 from $230, while UBS maintained its target at $271 despite concerns over cloud growth [6]

[Part I - Financial Information](index=4&type=section&id=Part%20I) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Apple's unaudited consolidated financial statements for Q3 and nine months 2025, highlighting growth in sales and net income [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details Q3 and nine-month 2025 sales and net income, showing significant year-over-year growth Q3 & Nine Months Ended June 28, 2025 - Statement of Operations (YoY) | Metric | Q3 2025 (in millions) | Q3 2024 (in millions) | YoY Change | Nine Months 2025 (in millions) | Nine Months 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Net Sales** | **$94,036** | **$85,777** | **+9.6%** | **$313,695** | **$296,105** | **+5.9%** | | Products Net Sales | $66,613 | $61,564 | +8.2% | $233,287 | $224,908 | +3.7% | | Services Net Sales | $27,423 | $24,213 | +13.3% | $80,408 | $71,197 | +12.9% | | **Gross Margin** | **$43,718** | **$39,678** | **+10.2%** | **$146,860** | **$136,804** | **+7.4%** | | **Operating Income** | **$28,202** | **$25,352** | **+11.2%** | **$100,623** | **$93,625** | **+7.5%** | | **Net Income** | **$23,434** | **$21,448** | **+9.3%** | **$84,544** | **$79,000** | **+7.0%** | | **Diluted EPS** | **$1.57** | **$1.40** | **+12.1%** | **$5.62** | **$5.11** | **+10.0%** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents Apple's balance sheet as of June 28, 2025, showing changes in assets, liabilities, and equity Balance Sheet Highlights (as of June 28, 2025 vs. Sep 28, 2024) | Metric | June 28, 2025 (in millions) | September 28, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $36,269 | $29,943 | +$6,326 | | Total current assets | $122,491 | $152,987 | -$30,496 | | **Total Assets** | **$331,495** | **$364,980** | **-$33,485** | | Total current liabilities | $141,120 | $176,392 | -$35,272 | | **Total Liabilities** | **$265,665** | **$308,030** | **-$42,365** | | **Total Shareholders' Equity** | **$65,830** | **$56,950** | **+$8,880** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows for the nine months ended June 28, 2025, detailing operating, investing, and financing activities Cash Flow Summary (Nine Months Ended) | Activity | June 28, 2025 (in millions) | June 29, 2024 (in millions) | | :--- | :--- | :--- | | Cash generated by operating activities | $81,754 | $91,443 | | Cash generated by investing activities | $17,782 | $1,490 | | Cash used in financing activities | ($93,210) | ($97,035) | | **Increase/(Decrease) in cash** | **$6,326** | **($4,102)** | - Major uses of cash in financing activities for the nine months ended June 28, 2025 included **$70.6 billion** for common stock repurchases and **$11.6 billion** for dividend payments[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures supporting financial statements, including revenue disaggregation, financial instruments, and segment performance Disaggregated Net Sales (Nine Months Ended, YoY) | Category | Net Sales 2025 (in millions) | Net Sales 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | iPhone | $160,561 | $154,961 | +3.6% | | Mac | $24,982 | $22,240 | +12.3% | | iPad | $21,071 | $19,744 | +6.7% | | Wearables, Home and Accessories | $26,673 | $27,963 | -4.6% | | Services | $80,408 | $71,197 | +12.9% | | **Total Net Sales** | **$313,695** | **$296,105** | **+5.9%** | - During the nine months ended June 28, 2025, the Company repurchased **312 million** shares of its common stock for **$69.3 billion**[53](index=53&type=chunk) Geographic Segment Net Sales (Nine Months Ended, YoY) | Region | Net Sales 2025 (in millions) | Net Sales 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $134,161 | $125,381 | +7.0% | | Europe | $82,329 | $76,404 | +7.8% | | Greater China | $49,884 | $51,919 | -3.9% | | Japan | $22,067 | $19,126 | +15.4% | | Rest of Asia Pacific | $25,254 | $23,275 | +8.5% | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month 2025 financial results, highlighting sales growth, gross margin, operating expenses, and capital return - The company warns that macroeconomic conditions (inflation, interest rates), tariffs, and other international trade disputes could materially impact business, results, and financial condition[65](index=65&type=chunk)[67](index=67&type=chunk) - During Q3 2025, the company announced new versions of its operating systems: iOS 26, macOS Tahoe 26, iPadOS 26, watchOS 26, visionOS 26, and tvOS 26[65](index=65&type=chunk) [Segment Operating Performance](index=17&type=section&id=Segment%20Operating%20Performance) Analyzes net sales growth across geographic segments for Q3 and nine months 2025, noting regional variations and key product drivers Net Sales by Geographic Segment (YoY Change) | Region | Q3 2025 Change | Nine Months 2025 Change | | :--- | :--- | :--- | | Americas | +9% | +7% | | Europe | +10% | +8% | | Greater China | +4% | -4% | | Japan | +13% | +15% | | Rest of Asia Pacific | +20% | +9% | - Growth drivers by region: - **Americas & Europe:** Higher net sales of iPhone and Services[69](index=69&type=chunk)[70](index=70&type=chunk) - **Greater China:** Q3 growth from iPhone and Mac; nine-month decline due to lower iPhone sales[71](index=71&type=chunk) - **Japan & Rest of Asia Pacific:** Higher net sales of iPhone and Services[72](index=72&type=chunk)[73](index=73&type=chunk) [Products and Services Performance](index=18&type=section&id=Products%20and%20Services%20Performance) Reviews net sales performance for products and services in Q3 and nine months 2025, highlighting growth drivers and declining categories Net Sales by Category (YoY Change) | Category | Q3 2025 Change | Nine Months 2025 Change | | :--- | :--- | :--- | | iPhone | +13% | +4% | | Mac | +15% | +12% | | iPad | -8% | +7% | | Wearables, Home and Accessories | -9% | -5% | | Services | +13% | +13% | - Key performance drivers: - **iPhone:** Growth driven by higher net sales of Pro models[75](index=75&type=chunk) - **Mac:** Growth from both laptops and desktops[76](index=76&type=chunk) - **iPad:** Q3 decline due to lower iPad Pro sales, but nine-month growth driven by iPad Air[77](index=77&type=chunk) - **Services:** Growth driven by advertising, the App Store, and cloud services[78](index=78&type=chunk) [Gross Margin](index=19&type=section&id=Gross%20Margin) Examines gross margin performance for Q3 and nine months 2025, noting improvements in Services and declines in Products Gross Margin Percentage (YoY Comparison) | Category | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Products | 34.5% | 35.3% | 36.9% | 37.5% | | Services | 75.6% | 74.0% | 75.5% | 73.8% | | **Total** | **46.5%** | **46.3%** | **46.8%** | **46.2%** | - The decrease in Products gross margin percentage in Q3 was primarily due to tariffs and a different product mix[81](index=81&type=chunk) - The increase in Services gross margin percentage in Q3 was primarily due to a different mix of services[82](index=82&type=chunk) [Operating Expenses](index=20&type=section&id=Operating%20Expenses) Details the increase in total operating expenses for Q3 2025, driven by higher R&D and SG&A costs Operating Expenses (Q3 YoY) | Expense Category | Q3 2025 (in millions) | Q3 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Research and development | $8,866 | $8,006 | +10.7% | | Selling, general and administrative | $6,650 | $6,320 | +5.2% | | **Total operating expenses** | **$15,516** | **$14,326** | **+8.3%** | - Growth in both R&D and SG&A expenses was primarily driven by increases in headcount-related expenses[86](index=86&type=chunk)[87](index=87&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's liquidity and capital resources, including cash position, purchase obligations, and capital return program - The company believes its current liquidity is sufficient to satisfy cash requirements and its capital return program for the next 12 months and beyond[91](index=91&type=chunk) - In Q3 2025, Apple repurchased **$21.0 billion** of its common stock and paid **$3.9 billion** in dividends and dividend equivalents[95](index=95&type=chunk) - The quarterly cash dividend was set at **$0.26 per share**, with an intention to increase it annually[94](index=94&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes to the company's market risk during the first nine months of fiscal 2025 - There have been no material changes to the Company's market risk during the first nine months of 2025[100](index=100&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 28, 2025, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 28, 2025[101](index=101&type=chunk) - There were no changes in internal control over financial reporting during the third quarter of 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal controls[102](index=102&type=chunk) [Part II - Other Information](index=23&type=section&id=Part%20II) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) Details significant legal proceedings, including European Commission investigations, a U.S. DOJ antitrust lawsuit, and the Epic Games case - The European Commission opened two formal investigations under the Digital Markets Act (DMA). It fined Apple **€500 million** in one investigation, a decision Apple has appealed[104](index=104&type=chunk) - The U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit against Apple on March 21, 2024, alleging monopolization in the smartphone market[105](index=105&type=chunk) - In the Epic Games lawsuit, a California District Court found Apple in violation of a 2021 injunction and referred the company for a determination on whether criminal contempt proceedings are appropriate. Apple is appealing the decision[106](index=106&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the company's risk factors since the 2024 Form 10-K, with prior disclosures incorporated - There have been no material changes to the Company's risk factors since the 2024 Form 10-K, other than those previously disclosed in the Q1 and Q2 2025 10-Q filings[108](index=108&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's share repurchase activity for Q3 2025, including the total shares repurchased and new authorization Share Repurchase Activity (Q3 2025) | Period | Total Shares Purchased (in thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | Mar 30 - May 3, 2025 | 43,161 | $200.79 | | May 4 - May 31, 2025 | 28,223 | $203.17 | | Jun 1 - Jun 28, 2025 | 32,880 | $200.73 | | **Total** | **104,264** | **N/A** | - On May 1, 2025, the Company announced an additional program to repurchase up to **$100 billion** of its common stock[112](index=112&type=chunk) [Defaults Upon Senior Securities](index=24&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports no defaults upon senior securities - None[109](index=109&type=chunk) [Mine Safety Disclosures](index=24&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[110](index=110&type=chunk) [Other Information](index=24&type=section&id=Item%205.%20Other%20Information) Reports no insider trading arrangements - Insider Trading Arrangements: None[111](index=111&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - Lists exhibits filed with the report, including CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1) and Inline XBRL data (Exhibits 101, 104)[114](index=114&type=chunk)

Core Insights - Apple reported a quarterly profit of $23.4 billion and revenue of $94 billion for the quarter ending in June, exceeding forecasts despite tariff concerns [1][2] - iPhone sales generated $44.6 billion in revenue, up from $39.3 billion year-over-year, indicating strong performance [2][9] - Apple faced $800 million in tariff costs in the last quarter and anticipates $1.1 billion in the current quarter due to ongoing trade tensions [4][7] Financial Performance - The company achieved a revenue record for the June quarter with double-digit growth across iPhone, Mac, and Services [2] - Revenue from Apple's services segment reached $27.4 billion, showcasing significant growth [9] Market Position - Global smartphone shipments decreased slightly to 288.9 million units, with Apple shipping 44.8 million iPhones, a 2% decline [3] - Apple maintained its position as the second-largest smartphone vendor, following Samsung [3] Tariff Impact - The Trump tariffs have increased Apple's costs, with Cook stating that the company is adjusting its supply chain to mitigate these impacts [4][8] - Most iPhones sold in the U.S. are now sourced from India as part of Apple's strategy to navigate trade challenges [7] Strategic Initiatives - Apple is committed to a $500 billion investment in the U.S. over the next four years to bolster its operations [8] - The company's pivot to manufacturing in India demonstrates its supply chain flexibility and ability to adapt to changing market conditions [10]