Apple‘s services revenue continued to climb in the first three months of 2025 to hit a new record, although at a slower pace than past quarters — and it came in just under analyst expectations. The company overall topped Wall Street estimates for the quarter even as investors awaited word on how President Trump’s tariffs might hurt its business.
The company’s Services business segment, which includes the App Store, Apple Pay, Apple TV+, Apple Music and more, generated a quarterly record $26.65 billion in sales, an increase of 11.8%. Analysts were projecting $26.70 billion in Services sales, according to StreetAccount.
Overall, Apple reported sales of $95.36 billion, up 5%, and net income of $24.8 billion (or $1.65 per share) for the March 2025 quarter. Wall Street was anticipating $94.68 billion in revenue and EPS of $1.63.
In Apple’s initial earnings report, there was no indication of how the company expects to be affected by Trump’s global tariffs, including the whopping 145% levy on China imports. Apple chief Tim Cook successfully lobbied the White House for an exemption from the China tariffs on smartphones and other electronics, per the New York Times. But the Trump administration subsequently announced plans for new tariffs on semiconductor chips, which could increase the prices of iPhones, Macs, iPads and other Apple products.
“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” Cook said in a statement. “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% over the past decade.”
Separately, on Wednesday Apple was served a legal defeat after a federal judge found that the company “in willful violation” of a 2021 court order in the Epic Games v. Apple lawsuit, which prohibited Apple from letting developers promote other forms of in-app payment in their iOS apps. The decision paves the way for Epic’s “Fortnite” to return to the App Store in the U.S.; Apple said it will appeal the ruling.
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