Apple announced impressive third-quarter results, showing its biggest revenue growth since December 2021. Earnings per share reached $1.57, beating the expected $1.43. Total revenue hit $94.04 billion, exceeding the forecast of $89.3 billion. iPhone sales brought in $44.58 billion, higher than the anticipated $40.06 billion. In Greater China, revenue was $15.37 billion, just over the expected $15.19 billion. The product segment earned $66.61 billion, compared to the projected $62.36 billion. On the downside, iPad revenue was $6.58 billion, missing the estimate of $7.07 billion. However, Mac sales were better than expected, reaching $8.05 billion against a forecast of $7.3 billion. The Wearables, Home, and Accessories segment earned $7.40 billion, falling short of the $7.78 billion estimate. Apple noted that nearly 10% of its sales growth came from consumers making early purchases due to upcoming tariffs. The company also set a record for June quarter revenue, with double-digit growth in iPhone, Mac, and Services across all regions. These strong results indicate that Apple’s core business remains robust, mainly driven by iPhone sales. As a result, we can anticipate a positive movement in the stock price soon. With earnings now out, the high implied volatility from options is expected to decline. This “IV crush” means it will be cheaper to open new positions in the coming weeks. Traders betting on this drop in volatility may be cashing in their profits now. We should also note that some sales were advanced due to tariff announcements. This could mean that the current strong numbers might take away from future demand, possibly affecting results for the next quarter. This creates uncertainty as we approach the end of the year and the new iPhone launch. The overall market situation adds more caution, with the VIX staying low around 15 for most of July 2025. New government data showing inflation rising to 3.1% has raised concerns about Federal Reserve actions, which could limit how high stocks rise despite good news. Reflecting on the past offers a warning. Last time growth was this strong was in December 2021, after which the stock peaked early in 2022 before a sharp decline. History shows that a standout quarter can sometimes precede a correction. Additionally, both iPad and Wearables revenues fell short of expectations. While the iPhone drives the company, these misses indicate that some of Apple’s product lines face challenges. This might suggest a change in consumer spending habits.

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