Apple’s Services Saved the Day

As usual, Apple’s Services revenue continues to skyrocket. It now accounts for over a quarter of the company’s overall revenue and fully eclipses every other product category, save for the still-dominant iPhone.

The Services category includes everything from consumer-facing services like Apple Music and Apple TV+ to App Store commissions and the billions of dollars Google kicks into the pot to be the default search engine on the iPhone.

The latest reports suggest that’s about $20 billion per year, which means that about a fifth of Apple’s $23.87 billion in Services revenue came from Google. The lion’s share is believed to stem from the 15/30% commission that Apple takes in from App Store sales, with many analysts estimating that at about half.

The rest comes from the obvious services, such as Apple Music and Apple One bundles, iCloud+ storage plans, and AppleCare+ coverage.

For the most part, Apple’s Services category has enjoyed double-digit year-over-year growth since Apple first began breaking it out several years ago, and it’s showing no sign of slowing down, proving that Tim Cook’s bet on a post-iPhone era was the right one.