Neil Cybart Neil Cybart

Initial Thoughts on Apple’s Strong 3Q25 Earnings

Hello everyone. Welcome to a special Friday edition of Above Avalon Daily. Apple reported 3Q25 earnings yesterday (Thursday). The results can be viewed here. Today's update will go over my initial thoughts on the release and earnings call. We will continue our discussion next week.

Have a great weekend.

Let's jump right into today's update.

Initial Thoughts on Apple’s Strong 3Q25 Earnings

Yesterday, Apple reported its strongest quarterly results in more than three years. Overall 3Q25 revenue was up 10%. We need to go back to 1Q22 for the last time Apple reported double-digit revenue growth (+11.2%). Results for iPhone and Mac were legitimately good. iPhone revenue was up 13% (strongest quarterly revenue growth since 4Q21) while Mac revenue was up 15% continuing what has been an upturn in the Mac business.

While the iPhone and Mac were the two Apple product categories that stood to see the greatest impact from a pull forward in demand related to tariff fears, Apple said such pull forward was not the primary driver for the strong quarterly performance. For iPhone, approximately 20% of 3Q25 revenue growth was attributed to pull forward. Overall, about 10% of Apple’s 3Q25 revenue growth was related to pull forward.

Apple also said iPhone channel inventory

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