Services Hits All-Time High

Apple actually set an all-time record in its Services category, which perhaps isn’t all that surprising considering the number of new services the company launched last year. The total revenue from services, at $13.3 billion, not only eclipsed every other individual category except the iPhone — it’s now higher than any of the other two categories combined — but is also well-positioned to soon exceed half of Apple’s iPhone revenue, and the dominant number two position.

Like other categories, Apple doesn’t break down its revenue by individual services, nor even talk all that much about everything that goes in there, but it includes not only the more well-known customer facing subscription services like Apple Music, Apple News+, Apple Arcade, Apple TV+, but also things like iCloud Storage plans and AppleCare+ subscriptions, sales of iTunes music, movies, TV shows, and Apple Books, and of course the 15-30 percent cut that Apple takes from App Store purchases, plus a few other hidden things like its multi-billion dollar deal with Google that keeps the search giant as the default entry in the Safari browser on Apple devices.