Q2 2025 Apple Inc Earnings Call Transcript
Key Points
- Apple Inc (AAPL) reported $95.4 billion in revenue, up 5% year over year, with a March quarter record for diluted EPS at $1.65.
- Services achieved an all-time revenue record of $26.6 billion, growing 12% compared to the prior year.
- iPhone revenue increased by 2% year over year, driven by the iPhone 16 family, with a strong active installed base.
- Mac revenue grew by 7% year over year, with every geographic segment showing growth and high customer satisfaction.
- Apple Inc (AAPL) announced plans to invest $500 billion in the US over the next four years, expanding facilities and sourcing more components domestically.
- Wearables, Home, and Accessories revenue declined by 5% year over year, facing a difficult comparison against previous product launches.
- The company faces a potential $900 million cost impact from tariffs in the June quarter, with uncertainty about future tariff changes.
- China revenue decreased by 2% year over year, although it was roughly flat when adjusted for foreign exchange headwinds.
- Product gross margins decreased by 340 basis points sequentially, driven by mix, foreign exchange, and seasonal loss of leverage.
- There are ongoing legal challenges, including the Epic case and Google antitrust trial, which could impact Apple Inc (AAPL)'s Services business.
Good afternoon, and welcome to the Apple Q2 fiscal year 2025 earnings conference call. My name is Suhasini Chandramouli, Director of Investor Relations. Today's call is being recorded.
Speaking first today is Apple's CEO, Tim Cook; and he'll be followed by CFO, Kevan Parekh. After that, we'll open the call to questions from analysts.
Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expense, taxes, capital allocation, and future business outlook, including the potential impact of tariffs and other trade measures and macroeconomic conditions on the company's business and results of operations. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast.
For more information, please refer to the risk factors discussed in Apple's most recently filed reports on Form 10-Q
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