Apple Posts $95.4 Billion in Q2 2025 Revenue, Tim Cook Talks Tariffs, Increase Costs by $900 Million and Pricing Future

Highlights

• Apple reported $95.4 billion in revenue, surpassing Wall Street’s expectations with a $24.78 billion profit. Services saw double-digit growth.
• Apple absorbed $900 million in tariff costs this quarter with CEO Tim Cook stating there are no immediate price hikes, but future changes are possible.
• Apple is shifting production to India and Vietnam to mitigate tariff effects, while maintaining customer loyalty and cash flow stability.

Caption – Apple reports Q2 2025 earnings with $95.4 billion in revenue. (Image credit – 9to5Mac)

Apple has announced its earnings for fiscal Q2 2025, reporting $95.4 billion in revenue for the quarter. This is up from $90.75 billion during the same period last year. This number also beats Wall Street’s expectations of $94.68 billion. Profit for the quarter stood at $24.78 billion.

In terms of earnings per share, Apple delivered $1.65, slightly above the $1.63 expected by investors.

Here’s a quick look at the major numbers –

• Total revenue – $95.4 billion
• iPhone revenue – $46.84 billion
• Mac revenue – $7.95 billion
• iPad revenue – $6.4 billion
• Wearables, Home, and Accessories – $7.52 billion
• Services revenue – $26.64 billion

Apple CEO Tim Cook highlighted the company’s growth in services and new product launches.

“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” said Tim Cook. “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,” Cook further added.

CFO Kevan Parekh also noted solid cash flow and customer loyalty, “Our March quarter business performance drove EPS growth of 8 percent and $24 billion in operating cash flow, allowing us to return $29 billion to shareholders,” he said. “And 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.”

Will Apple Raise Product Prices?

During the earnings call, Tim Cook addressed the possibility of product price hikes due to tariffs. Apple expects to absorb $900 million in tariff costs this quarter. For now, that cost isn’t being passed on to customers but Cook didn’t rule out future increases.

“Obviously, we’re very engaged on the tariff discussions,” Cook said.

“We believe in engagement and will continue to engage. On the pricing piece, we have nothing to announce today. I’ll just say that the operational team has done an incredible job around optimizing the supply chain of the inventory, and we’ll obviously continue to do those things to the degree that we can,” Cook explains.

Apple is already shifting manufacturing out of China, ramping up production in India for U.S.-bound devices and using Vietnam for other hardware. Still, tariff exemptions could change, especially if U.S. trade policy tightens.

Tim Cook’s full quote from the earnings call – “Now let me walk you through the impacts of tariffs in the March quarter and give you on what we expect for the June quarter. For the March quarter, we had a limited impact from tariffs as we were able to optimize our supply chain and inventory. For the June quarter, currently we are not able to precisely estimate the impact of tariffs as we are uncertain of potential future actions prior to the end of the quarter. However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs. This estimate should not be used to make projections for future quarters, as there are certain factors that benefit the June quarter. For our part, 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.”

As of now, Apple product prices remain unchanged but that could shift depending on future trade decisions.

FAQs

Q1. How much revenue and profit did Apple report for Q2 2025?

Answer. Apple announced $95.4 billion in revenue, exceeding Wall Street’s expectations of $94.68 billion. The company reported a profit of $24.78 billion, with earnings per share at $1.65.

Q2. Will Apple raise product prices due to tariffs?

Answer. Apple absorbed $900 million in tariff costs this quarter. While prices haven’t increased yet, CEO Tim Cook stated that future price hikes haven’t been ruled out.

Q3. How is Apple responding to tariff challenges?

Answer. Apple is shifting production to India for U.S.-bound devices and using Vietnam for other hardware to mitigate tariffs. Cook emphasised optimising supply chains.

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