Apple Inc. (AAPL) stock: Surge After Hours on Strong EPS, iPhone Growth and China Comeback
TLDR
Apple jumps after Q3 beat: iPhone, Mac, and services fuel big gains
Apple crushes Q3 expectations, iPhone 16 and AI drive future growth
Apple soars post-earnings with strong iPhone, Mac, and China rebound
Q3 win for Apple: iPhone shines, services surge, China sales recover
Apple rallies after-hours as iPhone, Mac, and AI power Q3 success
Apple Inc. (AAPL) shares closed at $207.57 on Thursday, dropping 0.71% during the session. However, shares surged 2% in after-hours trading, climbing to $211.00.
This came after Apple released quarterly results that beat Wall Street expectations across key metrics.
The company reported earnings per share of $1.57 on revenue of $94.04 billion for the fiscal third quarter ending June 28. This marks a 12% rise in profit and a 10% increase in revenue compared to last year. Strong product performance and services growth contributed significantly to these figures.
Apple’s financial results also highlighted gains in nearly every geographic segment. The company achieved double-digit growth in its iPhone, Mac, and Services businesses. It also announced a cash dividend of $0.26 per share, payable on August 14, 2025.
iPhone Sales Drive Revenue Boost and Help Offset iPad Decline
iPhone sales generated $44.58 billion in the quarter, up 13% year-over-year, surpassing the $40.22 billion expectation. The iPhone 16 outperformed its predecessor, with notable demand from existing Apple users. This performance made the iPhone the largest contributor to the company’s revenue growth.
While iPhone sales surged, the iPad segment saw an 8% drop to $6.58 billion, missing projections. A new, low-cost iPad launched in March failed to improve unit sales. Meanwhile, the “Other Products” segment, including wearables, also declined 8.64% to $7.4 billion.
Apple’s Mac business posted nearly 15% year-over-year growth, reaching $8.05 billion in revenue. New MacBook Air models released ahead of the quarter helped fuel the increase. This made the Mac the fastest-growing product category for the period.
China Sales Rebound with Regional Growth and Tariff Strategy
Revenue from Greater China rose 4% year-over-year to $15.37 billion after two consecutive quarters of decline. A government subsidy on select devices contributed to the turnaround. Apple benefited from both pricing support and strong local demand.
Previously, Apple had faced an 11% sales dip in Q1 and a 2% drop in Q2 within the region. Management attributed recent improvements to both improved macro conditions and strategic pricing. Apple’s combined China, Hong Kong, and Taiwan sales are now back in positive territory.
Additionally, Apple said around one percentage point of revenue growth came from customers buying early to avoid tariffs. The company reported it absorbed $900 million in tariff costs for the quarter. Apple continues to manage trade pressures while maintaining product availability.
Services and AI Expansion Bolster Long-Term Strategy
Apple’s services unit delivered $27.42 billion in revenue, up 13%, led by iCloud and App Store growth. The company noted strong demand for subscriptions and licensing partnerships. This segment also outpaced expectations of $26.80 billion.
Apple emphasized that it is expanding its artificial intelligence capabilities across all platforms and devices. It has acquired seven companies this year to strengthen its AI efforts. Leadership confirmed continued growth in AI investment while seeking future opportunities.
The company highlighted record-high levels for its installed base of active devices globally. Customer satisfaction and loyalty remain key drivers for platform engagement. Apple continues to invest in long-term infrastructure while executing short-term performance.
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Filed under: News - @ July 31, 2025 9:29 pm