Apple UK posts £5bn turnover as iPhone boom offsets AI lag
Apple UK racked up just shy of £5bn in turnover last year, as strong iPhone demand helped power growth across its British operations, according to newly filed accounts.
The tech behemoth’s UK arm, based in Battersea Power Station, reported revenue of £4.99bn for the year to 28th September 2025, up from £4.7bn the year before, as operating profits climbed to £1.2bn.
The numbers show the continued strength of Apple’s core hardware business, despite investors pushing the Silicon Valley giant to accelerate its AI strategy.
Globally, Apple reported record iPhone sales in its latest quarter, with revenue surging 16 per cent to $144bn (£106bn), driven by strong demand for its latest devices across markets like Europe and China.
Tim Cook, chief executive, said the firm was effectively in “supply chase mode”, as it struggled to keep up with the pace of demand for its iPhone 17.
This level of momentum seems to have filtered through to its UK arm, where Apple’s local subsidiary provides sales and support services for the wider group.
Operating costs rose modestly during the year, amid increased levels of activity.
Meanwhile, pre-profit tax came in at £128.9m, the filings show, which is slightly down on the year prior. The company paid a dividend of £21.9m.
Hardware strength masks AI questions
The iPhone maker’s UK performance comes at a pivotal moment for Apple globally, as the firm leans heavily on hardware sales while rivals ramp up AI spend.
Unlike competitors like Microsoft, which is pouring tens of billions into AI infrastructure, Apple has been seen taking a more cautious approach by opting to focus on refining its existing ecosystem.
That strategy is now under scrutiny, with analysts warning that Apple must make the most of its partnership with, Google, which will see Gemini AI embedded in upcoming Siri upgrades, to stay relevant and competitive.
However, the numbers show its traditional model is holding up, as its UK business continues to benefit from strong demand for flagship products.
Apple said UK operations remain focused on delivering services to group affiliates and supporting the roll-out of its products, while risks to the business include “retaining key employees and succession planning”, as well as a “rising cost base”.