Apple has reported a strong fiscal Q3 2025, driven by record-breaking revenue in its Services division. The company posted a 13.3% year-on-year increase, bringing Services revenue to US$ 27.42 billion for the June quarter. With a gross margin of 75.7%, this segment remains Apple’s most profitable. A user of a used or refurbished Apple iPhone consumes paid services, such as iCloud storage, App Store content, and Apple Music, at levels comparable to those using a new Apple iPhone. For this reason, Apple loves the secondary mobile market as it adds customers that otherwise potentially could use an Android device and promotes secondary use of their device. SecondaryMarket.news investigated how much of Apple’s recent Services revenue was generated by users of used and refurbished Apple iPhones.
A quick calculation reveals that of the US$18.20 billion in revenue generated by all active Apple iPhones last quarter, approximately US$2.73 billion came directly from used or refurbished devices. This suggests that Apple earns more than US$ 10 billion annually in Services revenue from the secondary mobile market alone, an impressive figure, especially considering its profit margins exceed 75%. No other company benefits from the secondary market at this scale quite like Apple.
Total revenue and profit also rise
Overall, Apple generated € 86.03 billion in total revenue, marking a 10% increase year-on-year. Net profit climbed 12% to €21.43 billion, or €1.44 per share. Analysts had projected earnings of €1.31 per share and revenue of €81.93 billion, with services estimated at €24.52 billion. Apple beat all three targets.
Growth seen across all categories
Apple CEO Tim Cook noted double-digit growth in Apple iPhone, Mac, and Services, alongside positive performance across all global regions. He highlighted Apple’s commitment to expanding its AI initiatives and openness to acquisitions that could accelerate development in this area.
Tariff costs weigh on future outlook
Despite the strong quarter, Apple is navigating growing geopolitical challenges. In response to tariff threats from U.S. President Trump, Apple incurred € 735 million in additional costs during the June quarter and expects this figure to rise to € 1.01 billion for the September quarter. The company warned this outlook depends on no further changes in trade policy.
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