Apple Inc. has released its latest quarterly report, Form 10-Q, for the third quarter of 2025. The report provides a detailed analysis of the company's financial condition and operating results. Here are the key highlights from the report:
Net Sales by Geographic Segment: Americas: Net sales increased by 9% to $41.2 billion in the third quarter of 2025, primarily driven by higher sales of iPhone and Services. Europe: Net sales increased by 10% to $24.0 billion in the same period, mainly due to higher sales of Services and iPhone. Greater China: Net sales increased by 4% to $15.4 billion in the third quarter, driven by higher sales of iPhone and Mac. Japan: Net sales increased by 13% to $5.8 billion, primarily due to higher sales of iPhone and Services. * Rest of Asia Pacific: Net sales increased by 20% to $7.7 billion, driven by higher sales of Services and iPhone.
Net Sales by Product and Service Category: iPhone: Net sales increased by 13% to $44.6 billion in the third quarter of 2025, primarily due to higher sales of Pro models. Mac: Net sales increased by 15% to $8.0 billion, driven by higher sales of both laptops and desktops. iPad: Net sales decreased by 8% to $6.6 billion, primarily due to lower sales of iPad Pro. Wearables, Home, and Accessories: Net sales decreased by 9% to $7.4 billion, mainly due to lower sales of Wearables and Accessories. * Services: Net sales increased by 13% to $27.4 billion, primarily driven by higher sales from advertising, the App Store, and cloud services.
Gross Margin: Products Gross Margin: Increased during the third quarter of 2025 primarily due to a different mix of products and favorable costs, partially offset by tariffs. Services Gross Margin: Increased during the third quarter of 2025 compared to the same period in 2024 due primarily to higher Services net sales and a different mix of services.
Operating Expenses: Research and Development: Increased by 11% to $8.9 billion in the third quarter of 2025, primarily driven by increases in headcount-related expenses and infrastructure-related costs. Selling, General, and Administrative: Increased by 5% to $6.7 billion in the same period, primarily driven by increases in headcount-related expenses and variable selling expenses.
Provision for Income Taxes: * Provision for income taxes increased to $4.6 billion in the third quarter of 2025, resulting in an effective tax rate of 16.4%, lower than the statutory federal income tax rate of 21%.
Liquidity and Capital Resources: The company believes its cash, cash equivalents, and marketable securities, along with cash generated by ongoing operations, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond. As of June 28, 2025, the company had manufacturing purchase obligations of $44.1 billion, with $43.8 billion payable within 12 months.
Today the company's shares have moved -0.71% to a price of $207.57. For more information, read the company's full 10-Q submission here.
