Apple continues its strong growth in India, achieving another record-breaking revenue quarter with double-digit growth. iPhone captured 7% volume and 23% revenue share as per Counterpoint during the quarter and the iPhone 16 was the top-shipped model in the region, a key driver of this momentum. A major highlight from the quarter was the significant shift in manufacturing.
CEO Tim Cook noted that the majority of iPhones sold in the U.S. now have a “Country of Origin” of India. According to Counterpoint Research, India’s contribution to total U.S. iPhone shipments surged to 71% in Q2, a substantial increase from just 31% in the same period last year.
Looking ahead, Apple also announced plans to expand its presence in India with new retail stores opening later this year, a key part of its ongoing channel expansion strategy.
Apple’s revenue climbed 10% year-over-year:
In the second quarter of 2025 (fiscal Q3 2025), Apple’s revenue climbed 10% year-over-year to $94.0 billion, marking a Q2 all-time high and the strongest annual growth in 14 quarters. Both the hardware and services divisions contributed significantly, with hardware increasing by 8% and services rising 13%.
iPhones accounted for 47% of total earnings, maintaining their lead as the company’s primary revenue driver. Mac contributed 9% and emerged as the fastest-growing product line, while the services segment made up 29% of overall revenue—achieving its highest figure to date.
Apple’s Wearables, Home, and Accessories division continued its downward trend:
Apple’s Wearables, Home, and Accessories division continued its downward trend, with declining sales for both the Apple Watch and AirPods. The category has been shrinking for the past two years, and Apple Watch revenue has now dropped for seven straight quarters.
The slowdown is largely attributed to longer replacement cycles and the lack of an updated Apple Watch SE—previously a major volume contributor. To reinvigorate this segment, Apple needs to introduce fresh health and AI capabilities, refreshed designs, and a new SE variant. Releasing an updated Watch SE could be a strategic move, especially in emerging markets where iPhone sales are seeing rapid growth.
