MacDailyNews presents live notes from Apple’s Q325 conference call

MacDailyNews presents live notes from Apple’s Q325 Conference Call with analysts starting at 2pm PT / 5pm ET today, July 31, 2025.
This stream is best experienced on an iPhone 7 or later, iPad (5th generation or later), or iPod touch (7th generation) using Safari on iOS 12 or later; or a Mac using Safari on macOS Mojave 10.14 or later. Streaming to your TV requires an AirPlay 2–capable device, or via AirPlay to an Apple TV (2nd generation or later) with the latest Apple TV software or tvOS. Other platforms may also be able to access the stream using recent versions of Chrome, Firefox, or Microsoft Edge (MSE, H.264, and AAC required).
Apple’s live conference call webcast will begin at 2pm PT / 5pm ET here.
Apple today posted record third quarter revenue of $94.0 billion, up 10 percent year over year, and quarterly diluted earnings per share of $1.57, up 12 percent year over year.
For the quarter, analysts’ consensus estimates called for Apple to report revenue of $89.54 billion and EPS of $1.43, both of which Apple beat handily.
Live notes in reverse chronological order:
• AAPL After Hours: $212.32, +$4.75 (+2.29%) @ 5:58:00 PM EDT
• End of conference call
• Cook: We’ve acquired around seven companies this year, not all AI-oriented; we are very open to MMA that accelerates our roadmap?
• Q: Mergers and acquistions?
• Cook: Thrilled with visionOS 26; we continue to be very focused on it
• Q: Vision Pro / visionOS 26 updates? More devices?
• Parekh: Yes, it will not be exponential growth, but it will grow notably due to investments in AI
• Q: CapEx increasing appreciably higher?
• Parekh: Q3 foreign exchange really had no impact on Q3 results; Q4 should see very small taliwind
• Q: How much of a benefit was currency in Q3?
• Cook: I would be careful about projecting based on the numbers from Q2 and Q3 because we’re uncertain of the tariff rates (also, last quarter, we had some build ahead, making the quarter unique). Volume will increase in holiday quarter, so will the tariff hit.
• Q: Tariff hit expectation, anything unique in the December quarter?
• Cook: It was primarily iPhone and Mac purchases, largely in the U.S.
• Q: 1-point pull forward due to tariff chatter?
• Cook: AI is one of the most profound technologies of our lifetime; what pieces of the chain are commoditized, I don;t want to talk about today because it would give away some pieces of our strategy
• Q: AI for edge devices? LLMs becoming a commodity?
• Cook: Quarter ended on the low end of the range
• Q: Inventory?
• Parekh: Sales driven by strength of the iPhone 16 family
• Q: iPhone activity?
• Cook reiterates that Apple has committed $500 billion over the next 4 years to invest in American production
• For other countries the vast majority of products are assembled in China
• The majority of iPhones sold in the U.S. has a country of origin of India; Vietnam for Macs, Apple Watches, and iPads
• Cook: Last quarter, the bulk of the tariffs were related to China
• Q: Supply chain strategy?
• Parekh: We had a very strong all-time quarterly record, it was broad-based with strong double digit growth around the world
• Q: Services?
• Cook: We have committed $500 billion over the next 4 years to invest in American production
• Cook: We are just estimating the cost and it increases quarter over quarter because sales volume is expected to increase (seasonal)
• Q: Tariff assumption of $1.1 billion in fiscal Q4?
• Cook: When you think about all that iPhone can do, it’s difficult to see a world where iPhone is not living in it. That doesn’t mean we aren;t thinking about other things as well, but the devices are likely to be complimentary to iPhone
• Q: Threats of new AI form factors where dependence on screen-based devices diminishes?
• Cook: Do not want to speculate
• Q: What if Google payments are disallowed legally?
• Parekh: Tariffs pull-ahead and demand and September quarter last year had the iPad launch (so, tough compare)
• Q: Overall revenue outlook? Conservative?
• Apple is reallocating a number of people to focus on AI; Cook: “We are putting all of our energy behind it.”
• Apple focused on personal AI and privacy; Apple will grow AI investment significantly
• Cook: We are making good progress on a more p[ersonalized Siri and we do expect to release the features next year
• Q: Siri situation?
• MacBook Air was top-selling laptop in Greater China and Mac mini was top-selling desktop
• Majority of customers buying iPhone in mainland China were new to the product
• iPhone had the top 3 models in urban China
• Install base in Greater China set new record
• Cook: Grew in Greater China by 4%, driven by an acceleration by iPhone and also Mac
• Q: What does Apple see in China market?
• Cook: We estimate pull forward of demand in April to be about 1 point of the 10 points due to tariff discussions
• iPhone 16 family upgrades grew significantly vs. iPhone 15
• Upgrades?
• Increasing CapEx investment significantly in AI and data centers
• Q: CapEx up notably year to date?
• Outlook assumes no new tariffs and continue Google default search payments: Apple expects revenue growth of high single digits; Service to grow YoY simialar to June quarter, 46%-47% gross margin, OpEx between $15.6B and $15.8B
• Net cash $31 billion
• $102 billion in total debt
• Mac and Apple Watch install bases hit new all-time highs
• Apple set all-time June quarter revenue ($89.54 billion) and EPS ($1.43) records
• Parekh recaps product revenue for each category:
– iPhone Revenue: $44.582 billion
– Mac Revenue: $8.046 billion
– iPad Revenue: $6.581 billion (difficult compare vs. launch of iPad Air and iPad Pro during Q324)
– Services Revenue: $27.423 billion
– Wearables, Home, and Accessories Revenue: $7.404 billion
• For September assuming current tariffs and no new tariffs, impact will be about $1.1 billion
• Cook: For June quarter, tariff hit was $800 billion
• Apple spikes, quickly settles below $210 as market realizes Cook didn’t retire