Apple ships 3 billionth iPhone; quarterly revenue jumps 10%—its biggest growth since 2021

Apple reaches 3 billion iPhone sales as revenue surges 10%, driven by tariff concerns.

: Apple has achieved a notable milestone by shipping its 3 billionth iPhone shortly before the 20-year anniversary of the product's launch. The company's recent quarterly financial results showcased a 10% increase in revenue to $94.04 billion, defying analyst expectations and marking its largest growth since 2021. This growth was primarily driven by strong performances in the iPhone, Mac, and services divisions, alongside consumer fears of increased prices due to US tariffs. CEO Tim Cook acknowledged the impact of geopolitical pressures and expressed openness to AI acquisitions, aiming to strengthen Apple's position in the competitive AI landscape.

Apple has officially shipped its 3 billionth iPhone, a milestone confirmed by CEO Tim Cook during the company’s Q3 FY2025 earnings call. This figure highlights the accelerating pace of iPhone distribution: it took 9 years to reach the first billion units (2007–2016), 5 more years to reach two billion (2016–2021), and just 4 years to hit the third billion (2021–2025).

Apple reported $94.04 billion in quarterly revenue, a 10% year-over-year increase — its strongest quarterly growth since December 2021. Earnings per share came in at $1.57, about 12% above analyst expectations. This growth was primarily driven by strong iPhone sales, as U.S. consumers rushed to buy ahead of potential tariffs.

iPhone revenue alone accounted for approximately $44.6 billion, up 13–13.5% year over year, making up nearly half of total quarterly revenue. Apple noted that about 1 percentage point of this growth stemmed from an “unusual buying pattern” in the U.S., where consumers accelerated purchases amid tariff concerns.

Beyond iPhones, Apple’s services revenue also rose to $27.42 billion, up 13% year over year. Mac sales grew by about 15%, reflecting strong consumer demand despite macroeconomic challenges. Still, Apple spent $800 million on tariffs during the June quarter and expects an additional $1.1 billion in the next, prompting supply chain shifts to India and Vietnam.

Despite these successes, Apple continues to face scrutiny for lagging in AI innovation, particularly with Siri. CEO Tim Cook acknowledged ongoing efforts to speed up AI development, including potential acquisitions to strengthen Apple’s competitive edge in this area.

Sources: Bloomberg, Reuters, Business Insider, The Verge, AP News

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