AppleCare, the company's extended warranty program. Advertising, which includes the company's own platforms that serve ads on Apple News and in the App Store, as well as licensing arrangements like the company's deal with Google to be the default iPhone search engine.Here's what's in services, according to Apple's annual SEC filing: Apple never breaks down how the services pie gets sliced, but officials did give a number of data points on Thursday about why they're again optimistic about the business. But the business is larger now, and analysts expect it to post almost $60 billion in total sales in fiscal 2023.Īpple's report should reassure analysts who had worried over the segment's dramatic slowdown since December 2022.Ĭontained in the services business is a variety of products. Sales of iPads and Macs could fall double-digit percentages on an annual basis, though the company expects iPhone sales do better than the 2% decline the business posted in the latest quarter.Īpple won't set growth records for its services business, which topped 38% at one point during the pandemic. "It goes from the fact that our install base continues to grow, so we got a larger pool of customers, to the fact that our customers are more engaged, as we have more transacting accounts and paid accounts on the ecosystem," CFO Luca Maestri said on the earnings call. Gross margin for services in the June quarter was 70.5%, almost double the 35.4% margin for all of Apple's hardware products. Personal Loans for 670 Credit Score or LowerĪpple's services business is critical for shareholders because it has stronger margins than hardware products, is more predictable because of recurring billing, and provides more ways for the company to make money from its installed base of over 2 billion devices. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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