Apple’s services revenue continued to climb in the first three months of 2025 to hit a new record, although it came in just a hair below analyst expectations. The company overall topped Wall Street estimates.
On the call with investors, CEO Tim Cook said President Trump’s tariffs if conditions remain as they are will add an estimated $900 million in costs for Apple for the June 2025 quarter. However, he said, the company is unable to precisely forecast current quarter trends because “we are uncertain of potential future actions” prior to the end of the quarter.
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In the June quarter, Apple expects the “majority” of the iPhones sold in the U.S. to come from India, and for iPads, Macs and most other company products imported to the U.S. to be manufactured in Vietnam, Cook said. China would be the country of origin for the “vast majority” of Apple’s products outside the U.S., he added.
For the March quarter, the Services business segment, which includes the App Store, Apple Pay, Apple TV+, Apple Music, iCloud and more, generated a quarterly record $26.65 billion in sales, an increase of 11.8%. Analysts were projecting $26.70 billion in Services sales, according to StreetAccount.
Overall, Apple reported sales of $95.36 billion, up 5%, and net income of $24.8 billion (or $1.65 per share) for the March 2025 quarter. Wall Street was anticipating $94.68 billion in revenue and EPS of $1.63.
Cook previously had successfully lobbied the White House for an exemption from the China tariffs — which are currently set at a whopping 145% — to smartphones and other electronics, per the New York Times. But the Trump administration subsequently announced plans for new tariffs on semiconductor chips, which could increase the prices of iPhones, Macs, iPads and other Apple products.
“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” Cook said in prepared remarks. “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% over the past decade.”
On Wednesday Apple was served a legal defeat after a federal judge found that the company “in willful violation” of a 2021 court order in the Epic Games v. Apple lawsuit, which prohibited Apple from letting developers promote other forms of in-app payment in their iOS apps. The decision paves the way for Epic’s “Fortnite” to return to the App Store in the U.S.; Apple said it will appeal the ruling.