Apple vs Samsung Q3 2025: The Battle Between AI Devices and AI Chips

Mirror Review

October 31, 2025

The Apple vs Samsung rivalry entered a new phase after both companies reported their Q3 2025 earnings last week.

Apple posted $102.5 billion in revenue, up from $94.9 billion last year, powered by stronger iPhone, Mac, and Services demand.

Samsung, meanwhile, reported KRW 86.1 trillion (~ $64B) in revenue and a sharp jump in operating profit to KRW 12.2 trillion (~ $9.2B), thanks to record-high sales of AI memory chips like HBM3E.

This is the foundation of the evolving AI devices vs AI chips battle: one where Apple grows through devices and services, while Samsung surges on chips and infrastructure.

1. Apple’s AI Device Strategy Is Turning Into Real Revenue

Apple’s Q3 2025 looked exactly like a company benefiting from an AI-driven upgrade cycle.

Key Apple Q3 2025 Numbers

Total revenue: $102.46B
iPhone revenue: $49.0B (up YoY)
Mac revenue: $8.7B
Services: $28.75B, a record high
Net income: $27.46B
EPS: $1.85

The biggest driver was the AI-centric iPhone lineup powered by the new M-series neural engines. Apple’s approach is clear: Build AI features directly into devices, and lock the value into Services.

Why Apple’s device-led model works

The iPhone is still the world’s most profitable consumer product.
AI upgrades (camera intelligence, on-device GenAI, real-time translation, personal automation) encourage faster replacement cycles.
Apple’s Services engine adds recurring revenue per user from subscriptions, iCloud+, App Store, and AI-powered features.

This quarter shows that Apple isn’t trying to dominate AI hardware; it’s trying to dominate AI experiences. And experiences create stickiness.

As Apple CEO Tim Cook said in the earnings call, “The best AI is the one you don’t feel — it just works.”

This line reflects Apple’s long-term strategy: AI as a seamless layer inside its ecosystem, not a standalone feature.

2. Samsung’s AI Chip Power Is Becoming Its Main Growth Engine

Where Apple rises through devices, Samsung rises through factories.

Samsung’s Q3 2025 was the company’s strongest in years because the world is hungry for the one thing Samsung leads globally: AI memory and foundry technology.

Key Samsung Q3 2025 Numbers

Revenue: KRW 86.1T (~ $65B)
Operating profit: KRW 12.2T (~ $9.2B) — up 159% QoQ
DS (chips) revenue: KRW 33.1T (~ $25B)
Memory revenue: KRW 26.7T (~ $20B) — record high

The real driver: AI infrastructure spending

Samsung’s memory unit expanded HBM3E shipments as cloud companies rushed to secure supply for AI data centers.

Key highlights from the earnings release:

HBM3E demand surged with AI model training expansion.
Samsung began mass production of 2nm GAA chips, a major milestone in foundry leadership.
Fab utilization improved as one-time costs fell.

Samsung technologies are rapidly becoming the base layer supplier for the AI world, from memory to logic chips to displays.

Moreover, Samsung’s growth engine has clearly shifted from smartphones to semiconductors.

This shows one clear trend in the Apple vs Samsung battle: Samsung is winning the supply chain side of the AI revolution.

3. A Shift in the Apple Vs Samsung Rivalry: Two Different Lanes of AI Growth

Instead of fighting for the same prize, the two giants now dominate different parts of the AI value chain. This is what makes Q3 2025 a turning point.

Apple controls the AI front-end

This includes:

AI smartphones
AI PCs (M-series Macs)
Wearables
Services revenue
App ecosystem and developer platform

Apple’s AI plays are consumer-facing.

Samsung controls the AI back-end

This includes:

HBM3E and upcoming HBM4 memory
2nm GAA node manufacturing
AI server memory
Foundry producing chips for multiple global clients

Samsung’s AI plays are infrastructure-facing.

Why this matters

Consumers will associate AI with Apple’s product experience, but the infrastructure that powers the AI boom will largely carry Samsung’s imprint.

It’s a split that mirrors historical patterns:

In the 2000s, Intel built the chips, and Microsoft built the experience.
In the 2020s, Samsung builds the AI hardware, and Apple builds the AI experience.

This two-lane model explains why both companies can grow at the same time without eroding each other.

4. The Market Impact: Apple Stock vs Samsung Stock

Investors reacted differently to both earnings. For Apple Inc., shares rose modestly: after the Apple Q4 2025 results, Apple stock climbed roughly +0.57% during regular trading and a further +0.99% after hours, reaching about US$272.38. Meanwhile, Samsung Electronics Co., Ltd. shares jumped by over 5% immediately after its Q3 2025 earnings release, reaching a 52-week high.

Apple stock sentiment

Apple benefits from:

Predictable Services revenue
Strong device margins
Reduced reliance on China
Stable buybacks

Apple’s rising Services margins show the company’s shift into a recurring-revenue machine, which Wall Street loves.

Samsung stock sentiment

Samsung benefits from:

The AI memory supercycle
Higher chip ASPs
Improved foundry utilization
Early 2nm leadership

Samsung is historically cyclical, but AI infrastructure spending is making DS margins more stable.

What Comes Next

With both companies now on separate AI tracks, here are the most realistic forecasts based on current momentum.

Prediction	Likelihood	Why
Apple’s Services revenue surpasses US$30 billion in the next quarter	High	Services already at ~US$28.75B and device upgrades + AI features bolster tailwinds.
Samsung’s HBM4 chips go into full production and further boost margins	Medium-High	They are shipping samples now and expect demand to exceed supply.
Apple boosts its AI acquisitions/investments in 2026	Medium	Cook noted internal AI work and hinted at M&A or partnerships.
Samsung faces chip supply constraints for mobile devices due to prioritising AI memory	Medium	Executive commentary suggests memory demand may squeeze mobile/PC chip supply.