Apple — Financial Results
Services Is Now Apple's Most Profitable Engine, Growing Fast
| Category | 2025 Revenue | 2024 Revenue | Change | Gross Margin % (2025) |
|---|---|---|---|---|
| Services | $109.2B | $96.2B | +14% | 75.4% |
| Products | $306.9B | $294.9B | +4% | 36.8% |
Services — which includes the App Store, advertising, Apple Music, iCloud, and Apple Pay — grew 14% to $109 billion and now carries a 75.4% gross margin (profit after direct costs), compared to just 36.8% for hardware. This is the third consecutive year of double-digit Services growth, and it is increasingly the profit engine of the business.
Total Revenue Grew 6% to $416 Billion, Driven by iPhone Pro Models
| Segment | 2025 | 2024 | Change |
|---|---|---|---|
| iPhone | $209.6B | $201.2B | +4% |
| Mac | $33.7B | $30.0B | +12% |
| Wearables, Home & Accessories | $35.7B | $37.0B | -4% |
Overall revenue rose 6% to $416 billion. iPhone remains the largest product by far, with growth coming specifically from higher-priced Pro models. Mac had a strong year, up 12%. The one weak spot in hardware was Wearables (Apple Watch, AirPods, accessories), which fell 4% — continuing a multi-year decline in that category.
Greater China Revenue Fell 4%, the Only Region Going Backwards
| Region | 2025 | 2024 | Change |
|---|---|---|---|
| Greater China | $64.4B | $67.0B | -4% |
| Americas | $178.4B | $167.0B | +7% |
| Japan | $28.7B | $25.1B | +15% |
Greater China — Apple's third-largest market — shrank for the second straight year, this time by 4%, driven by weaker iPhone sales. Every other region grew, with Japan particularly strong at +15%. China remains a meaningful risk worth watching.
Tariffs Are Already Hitting Profit Margins on Products
Apple acknowledged that tariffs on imports from China, India, and other countries began affecting results in the second quarter of 2025. Products gross margin percentage actually dipped slightly from 37.2% to 36.8% — with tariff costs explicitly cited as a drag. Management flagged ongoing uncertainty, including a U.S. government investigation into semiconductor imports that could widen the impact.
Apple Returned $104.7 Billion to Shareholders in a Single Year
In May 2025, Apple announced a new share repurchase program worth up to $100 billion and raised its quarterly dividend from $0.25 to $0.26 per share. During fiscal 2025, the company bought back $89.3 billion of its own stock and paid $15.4 billion in dividends — a combined $104.7 billion returned to shareholders. Apple held $132.4 billion in cash and marketable securities at year-end, supporting its ability to sustain this program.
Tax Bill Dropped Sharply — But Largely Due to a One-Time Legal Resolution
| 2025 | 2024 | |
|---|---|---|
| Tax provision | $20.7B | $29.7B |
| Effective tax rate | 15.6% | 24.1% |
Apple's tax bill fell by $9 billion year-over-year, pushing the effective tax rate down from 24.1% to 15.6%. The primary reason was a $10.7 billion swing related to the State Aid Decision — a European legal matter — rather than a structural improvement in Apple's tax position. Investors should be careful not to treat this as a repeatable benefit.