On the earnings conference call today, Apple CEO Tim Cook and CFO Kevan Parekh provided insights into the sales performance of the company’s key product categories for Q4 2025. Below is a comprehensive summary of the insights shared.
### iPad
While discussing iPad revenue, Parekh pointed out that sales remained unchanged compared to the previous year, indicating a tough comparison with the same quarter last year when the release of new iPad Air and iPad Pro models significantly drove up sales. Nevertheless, he emphasized that the performance was better than anticipated.
Parekh remarked, “The install base hit an all-time record with a September quarter high for upgraders, and over half of the customers who bought an iPad in the quarter were new to the product.” This shows that despite record upgrades, a significant portion of iPad sales went to first-time buyers.
### Apple Watch
Apple does not report Apple Watch revenue as a separate figure, choosing instead to categorize it under “Wearables, Home, and Accessories.” Still, Parekh reiterated a familiar point: most sales of the Apple Watch were to newcomers. He commented, “Both the Apple Watch and AirPods install bases attained new all-time highs. More than half of the customers acquiring an Apple Watch in the quarter were new to the product. Additionally, we set a September record for upgrades on the Apple Watch.” This indicates that the Apple Watch is continuing to broaden its user base, signifying strong demand from new users.
### Mac
The Mac category saw a 13% year-over-year rise in revenue, although Parekh did not go into great detail about this segment. He noted, “the Mac install base achieved another all-time high, with nearly half of those who bought a Mac being first-time purchasers.” This suggests that, unlike the iPad and Apple Watch, the majority of Mac customers were existing users choosing to upgrade instead of new customers transitioning from different platforms.
### iPhone
For the quarter that concluded on September 27, the iPhone brought in $49 billion in revenue, which marks a 6% rise from the same quarter last year. Parekh mentioned that this represented a slight 1% increase from Q4 2024, which indicates stable sales as the new iPhone season approaches. He stated, “the iPhone active install base surged to an all-time high, and we established a September quarter record for upgraders.” Similar to the Mac, this suggests that the majority of iPhone sales were driven by existing users upgrading their devices rather than new customers moving from Android.
### Summary
In summary, although every product category witnessed unprecedented highs in their install user bases, the sales dynamics differed. Most sales of iPhones and Macs stemmed from upgrades, while a significant portion of iPad and Apple Watch sales were credited to first-time buyers. This trend underscores Apple’s capability to draw in new users while also retaining and upgrading their current customer base.
Did you upgrade or acquire an Apple product for the first time last quarter? Share your thoughts in the comments.
