Apple's Q4 2025 Earnings Call Takeaways

Apple's fourth fiscal quarter of 2025 saw record-breaking revenue of $102.5 billion, surpassing analyst expectations. iPhone 17 demand was exceptionally strong, with Tim Cook describing it as "off the chart" and setting a September quarter record for upgraders. Despite strong product reception, iPhone supply remained constrained for several models. iPad sales were flat, though half of its customers were new to the product. Mac sales increased to $8.7 billion, driven by new MacBook Air models, and the Mac install base reached an all-time high. However, next quarter's Mac sales are expected to be less impressive due to a difficult year-over-year comparison. Wearables, Home, and Accessories saw a slight dip in sales, totaling $9.01 billion. The Services segment achieved a new all-time revenue record of $28.8 billion, exceeding $100 billion for the year. Apple is significantly increasing AI investments and is on track to release an upgraded Siri next year. Despite robust iPhone performance, revenue in China decreased, though growth is anticipated in the December quarter due to the iPhone 17's reception. Apple also incurred $1.1 billion in tariff-related costs in Q4 2025, with further costs expected next quarter. The company projects 10 to 12 percent revenue growth for the December quarter, anticipating its best December quarter ever.