Apple reported strong Q4 FY'25 results with quarterly revenue coming in at $102.5 billion, marking an 8% year-over-year increase, and diluted earnings per share of $1.85, a 13% rise on an adjusted basis. Growth was led by the launch of the iPhone 17 series and an all-time high in services revenue of $28.8 billion, up 15% year over year. Mac sales also increased by 13% due to the success of the MacBook Air.
Note: Apple's FY'25 ended on September 27, 2025.
President Donald Trump’s wave of tariffs on key trading partners is likely to have a significant impact on Apple, as it relies heavily on overseas manufacturing. The company reported tariff-related costs of about $1.1 billion in the Q4 FY'25 and anticipates that these costs will increase to about $1.4 billion in the holiday quarter.
Apple unveiled its new iPhone 17 lineup at its September 2025 event, introducing the iPhone 17, a redesigned iPhone 17 Pro, and the all-new ultra-thin iPhone Air. The series features major technological upgrades, including the A19 chip, enhanced camera systems, and advanced display technology. Apple also raised prices for the Pro model —likely its best-selling variant —a move that could boost profit margins.
Below are key drivers of Apple's value that present opportunities for upside or downside to the current Trefis price estimate for Apple:
For additional details, select a driver above or a division from the interactive Trefis split for Apple at the top of the page.
Apple makes money primarily by selling mobile phones, computers, and tablets to consumers worldwide. Apple's well-known consumer products include the iPhone, Mac, iPad, and Apple Watch. In addition to selling hardware, Apple makes money from services that include the App Store, Apple Music, and iCloud.
We believe the iPhone segment is more valuable than the Mac and iPad segments due to the following:
The smartphone market is significantly larger than the tablet market, and margins in the smartphone business are also likely to be higher. About 1.22 billion smartphones were shipped globally in 2024, per Canalys.
Apple's Mac computers have gained market share due to their superior product differentiation, proprietary Mac OS software and applications, speedy M-Series processors, and premium build quality. Apple has also been benefiting from the fact that it plays in the high end of the PC market, typically focusing on the lucrative $1,000+ price points rather than the commoditized low- and mid-range where a bulk of the volumes come from. Over FY'22, Mac Revenues reached an all-time high of $40 billion, although it declined to about $30 billion in FY'23 and remained roughly flat in FY'24 as the Covid-19-related boom eased.
Apple's Services business has grown 2x between 2019 and 2024, eclipsing the iPad and Mac to become the company's second-largest business segment with revenues of about $85 billion in FY'23. While the App Store remains the primary driver of growth, services such as Apple Music and Apple TV+ are also gaining traction. Apple's base of paid subscriptions on its platform has also been rising steadily, with over 1 billion active subscriptions as of late 2024.
