Apple has reported a record-breaking June quarter (Q3 FY2025) with $94.04 billion in global revenue, a 10% year-on-year surge, driven by robust iPhone 16 sales and a services boom, with India emerging as a standout market. CEO Tim Cook highlighted double-digit growth in emerging markets, including India, where Apple set revenue records alongside over two dozen regions like the US, Canada, and South Asia. However, looming U.S. tariffs threaten to add $1.1 billion in costs for the September quarter.

India’s contribution was pivotal, with iPhone sales up 13.5% to $44.58 billion globally, fueled by the iPhone 16’s popularity. Apple’s services segment, including Apple Music, iCloud, and Apple TV+, hit a new high of $27.42 billion, up 13.3%. Mac revenue also soared 15% to $8.05 billion, driven by the M4 MacBook Air. Cook announced plans for new Apple Stores in India and the UAE later in 2025, following the recent online store launch in Saudi Arabia. India’s growing role as a production hub, with most U.S.-bound iPhones now sourced from there, underscores its strategic importance.

The tariff cloud, however, looms large. U.S. President Donald Trump’s 25% tariff on India, part of an Executive Order targeting nearly 70 nations, contributed to $800 million in costs in the June quarter, below Apple’s $900 million forecast. For September, assuming stable tariff policies, Apple projects a $1.1 billion hit, a concern Cook called “evolving.” The company has mitigated impacts by shifting production, with Vietnam supplying most U.S.-bound Macs and Apple Watches. Despite these challenges, Apple forecasts mid-to-high single-digit revenue growth for the September quarter, with gross margins of 46-47%.

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Apple’s India revenue for FY24 reportedly hit ₹67,000 crore ($8 billion), up 35% from FY23, with exports exceeding $10 billion. The company aims to boost India’s share of iPhone production to 23-25% by FY26 under the PLI scheme. Yet, competition from Samsung and Alphabet’s AI advancements, coupled with a 17% stock drop in 2025, signal headwinds. Apple’s focus on AI, with increased capital expenditure and a delayed Siri upgrade planned for 2026, aims to keep pace.

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