Apple clocks $95.4B in Q2 revenue amid strong iPhone sales

iPhone maker Apple reported a stronger-than-expected second quarter for FY25, posting revenue of $95.4 billion, up 5% year-on-year.

“Today, Apple is reporting strong quarterly results, including double-digit growth in Services. We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade,” said Tim Cook, Apple’s CEO.

Its flagship iPhones dominated the company's sales, with Apple selling $46.8 billion worth of iPhones in the period. The company also launched the iPhone 16e during the quarter.

Its Services segment was also a key growth driver this quarter, growing 12% to $26.7 billion. The division, which includes the App Store and Apple TV+, continues to be a high-margin business for the company.

Apple's net income rose to $24.78 billion, with earnings per share rising 8% to $1.65, up from $1.53 a year ago when net income stood at $23.64 billion. 

Apple’s Mac division posted $7.95 billion in revenue for the quarter, boosted by the launch of new MacBook Air and Mac Studio models.

The iPad segment witnessed sales of $6.4 billion, following the release of updated entry-level iPads and iPad Air models featuring faster M3 chips earlier this year. According to Bloomberg, a new iPad Pro with an M5 chip could debut by the end of 2025.

Meanwhile, the Wearables, Home, and Accessories segment contributed $7.52 billion in sales. 

Apple’s shares fell as much as 4% in after-hours trading on Thursday on the NASDAQ.

Impact of tariffs

Amid the US-China trade war, Apple is said to rely more on manufacturing in India. Speaking to CNBC, Cook said most iPhones sold in the US this quarter will be manufactured in India, while a majority of iPads, Macs, and Apple Watches will come from Vietnam.

The California-based firm expects tariffs to increase its costs by $900 million in the current quarter, assuming no new tariffs or significant changes, said the CEO during the earnings call.

“We will manage the company the way we always have with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates,” he said.

The company has also announced plans to decrease its share buyback programme to $100 billion and boost the quarterly dividend by 4% to 26 cents a share.

In addition, Apple CFO Kevan Parekh said the company posted 8% EPS growth and $24 billion in operating cash flow in the March quarter, returning $29 billion to shareholders. 

“Thanks to our high levels of customer loyalty and satisfaction, our installed base of active devices once again reached a new all-time high across all product categories and geographic segments,” said Parkeh.