Apple Q3/25: Very Good Results, But I'm Still Cautious

Michael McGrath
4.4K Followers

Summary

  • Apple delivered strong Q3/25 results, but some of the iPhone growth was driven by one-off tariff-related demand.
  • I am concerned about iPhone sales plateauing, significant tariff headwinds, regulatory threats to services, and Apple's lack of new successful product platforms.
  • Apple is lagging in AI, and its recent updates offer diminishing value.
  • The stock is currently overvalued relative to its growth prospects.
  • I am lowering my rating from Buy to Hold; only a major AI acquisition or breakthrough product launch would prompt an upgrade.
Apple Store

Nikada

Apple (NASDAQ:AAPL) reported surprisingly good results last night for its latest quarter. However, I have some significant concerns about its future. Let's review the results and then get into the concerns.

Q3/25 Results

Apple just released its Q3/25 results last

This article was written by

4.4K Followers
Author of Autonomous Vehicles: Opportunities, Strategies, and Disruptions. Michael E. McGrath is a proven expert on the strategies of technology-based companies. He has researched autonomous vehicles for the last 3 years, leading to the original publication of this book, as well as the recently expanded and updated second edition. He is a founder of PRTM, the leading management consulting firm to technology companies, former CEO of i2Technologies and experienced board member, serving on four public company boards, as well as several venture capital-funded companies. In addition to Autonomous Vehicles, he is the author of Product Strategy for High-Technology Companies, which has been used by many technology-based companies to guide their strategies.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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