Apple Beats Q3 Expectations with $94 Billion Revenue and Ramps Up AI Push
Apple has defied seasonal odds once again. Despite the third quarter traditionally being the slowest for iPhone sales, Apple reported a whopping $94 billion in revenue, marking a 10 percent year-over-year rise and smashing the projected $89.3 billion figure. This makes it the company’s highest-ever revenue for a June quarter.
Apple CEO Tim Cook highlighted India, South Asia, and the Middle East as key players in this surge. iPhone sales alone shot up 13 percent, clocking in at $44.58 billion, thanks in large part to the continued popularity of the iPhone 16 models. Mac sales also surged 15 percent, leading Apple’s product categories with $8.05 billion in revenue.
Cook noted that Apple experienced growth in every geographic segment. Countries like China, the US, and regions in Latin America and Europe all saw double-digit boosts in iPhone, Mac, and service revenues. The Services division — covering iCloud, Apple Music, the App Store, and Apple’s deal with Google — also grew 13 percent, generating $27.42 billion this quarter.
However, not every product line shared the spotlight. iPad sales fell 8 percent to $6.58 billion, and accessories like Apple Watch and AirPods dropped by 8.64 percent, generating $7.4 billion.
One of the more forward-looking announcements came in the realm of AI. Cook confirmed Apple’s commitment to “significantly grow” its AI investments. The Apple Intelligence suite — now integrated across iOS, iPadOS, and macOS — represents the company’s next major frontier. It will compete with the likes of Google Gemini, Microsoft Copilot, and OpenAI, which Apple currently collaborates with to enhance Siri.
Speculation is already swirling about potential acquisitions. Perplexity and Mistral have emerged as rumored contenders that Apple may consider to fast-track its AI ecosystem. Given that rivals like Samsung are sealing AI deals for tighter integrations, Apple could follow suit to stay ahead.
With iOS 26 and the next iPhone lineup on the horizon, all eyes are on Apple to see whether its AI ambitions will match its traditional hardware dominance. Cook has called AI “the most profound technology of our time” — now it’s a matter of execution.
