Apple’s revenue growth in Q2 of its 2025 fiscal year, reaching $95.4 billion (a 5 percent increase year-over-year), is primarily being driven by steady gains across most of its product lines and continued strength in services.
Tim Cook, Apple’s CEO, said, in earnings report: “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. We were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.”
Canalys views on Apple
Canalys report earlier indicated that Apple shipped 55 million units grabbing 19 percent market share in the global smartphone market, driven by growth in emerging Asia Pacific markets and the United States.
In China smartphone market, Apple dropped to the fifth position, shipping 9.2 million units, marking a decline of 8 percent.
Le Xuan Chiew, Research Manager at Canalys (now part of Omdia), said. “Apple built up inventory ahead of tariff policies. While iPhones produced in Mainland China account for the majority of US shipments, production in India ramped up toward the end of the quarter, covering standard models of the iPhone 15 and 16 series, alongside accelerating production of the 16 Pro series.”
Sales of products
iPhone — $46.841 billion vs $45.963 billion
Mac — $7.949 billion vs $7.451 billion
iPad — $6.402 billion vs $5.559 billion
Wearables, Home and Accessories — $7.522 billion vs $7.913 billion
Services — $26.645 billion vs $23.867 billion
Geographies
Americas — $40.315 billion vs $37.273 billion
Europe — $24.454 billion vs $24.123 billion
China — $16.002 billion vs $16.372 billion
Japan — $7.298 billion vs $6.262 billion
Rest of Asia Pacific — $7.29 billion vs $6.723 billion
The iPhone remains the company’s largest revenue contributor, growing modestly to $46.84 billion from $45.96 billion, showing resilience in a mature smartphone market.
Strong performance in the Mac and iPad segments also contributed, with Mac sales rising to $7.95 billion and iPad growing a notable 15 percent to $6.4 billion, suggesting demand recovery in personal computing and tablets.
However, wearables, home, and accessories declined year-over-year, indicating potential saturation or shifting consumer priorities in that segment.
Services, however, continue to be the standout, surging nearly 12 percent to $26.65 billion. This reflects Apple’s successful strategy of deepening its ecosystem through App Store, iCloud, Apple Music, and other recurring revenue streams, which are less susceptible to hardware cycles.
China sales drop
Geographically, Apple saw healthy growth in the Americas, Japan, and the rest of Asia Pacific, with the U.S. market again leading as a revenue anchor. Notably, Japan saw a significant 17 percent year-over-year increase, and the Rest of Asia Pacific also posted solid gains.
However, challenges in Greater China persist. Revenue in the region fell slightly to $16 billion from $16.37 billion a year ago, signaling ongoing headwinds. These include intensifying competition from domestic brands like Huawei, which is seeing a resurgence, and regulatory uncertainty in the Chinese market.
Moreover, rising nationalism and a shift toward locally made tech products could be tempering demand for Western brands. With China being a critical manufacturing hub and major consumer market for Apple, prolonged softness in this region could have strategic and financial implications if not offset by gains elsewhere.
Overall, while Apple is demonstrating robust financial performance and diversified growth, especially in services and emerging markets, navigating macroeconomic challenges and competitive pressures in China remains a key concern for sustaining long-term momentum.
Baburajan Kizhakedath
