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Apple

CIRP: Apple Services Is About Half the Size of iPhone Revenue

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Apple Services is growing fast, but it is not yet nearly equal to the iPhone in revenue: in Apple’s fiscal 2025, Services brought in $109.158 billion, about 52.1% of iPhone’s $209.586 billion. The comparison supports calling Services a major business; it does not show that it is as important by every measure.

How close is Services revenue to iPhone revenue?

Apple’s fiscal 2025 ended September 27, 2025. The company reported $109.158 billion in Services net sales and $209.586 billion in iPhone net sales. Dividing the former by the latter gives Services revenue equal to about 52.1% of iPhone revenue—roughly 52 cents for every iPhone revenue dollar.

Services accounted for about 26.2% of Apple’s $416.161 billion in total net sales, while iPhone accounted for about 50.4%. These shares are calculations from Apple’s reported figures, not separate metrics reported by Apple. The figures are for Apple’s fiscal year, not the calendar year.

Services is closing the revenue gap

Apple’s reported net sales show Services growing more quickly than iPhone over the last three fiscal years in the comparison. The table uses Apple’s fiscal-year figures; its 2025 fiscal year ended September 27, 2025.

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Apple category FY2023 FY2024 FY2025 FY2025 change from FY2024
Services $85.200 billion $96.169 billion $109.158 billion 14%
iPhone $200.583 billion $201.183 billion $209.586 billion 4%
Total net sales $383.285 billion $391.035 billion $416.161 billion 6%

Services revenue was about 42.4% of iPhone revenue in FY2023, 47.8% in FY2024, and 52.1% in FY2025, calculated from Apple’s reported category totals. The prior year, Services rose 13% while iPhone revenue was nearly flat. Apple attributed FY2025 Services growth primarily to advertising, the App Store, and cloud services; it said higher net sales of Pro models contributed to iPhone growth. [Apple’s FY2025 Form 10-K; Apple’s FY2024 Form 10-K]

What Apple counts as Services

Services is a broad financial-reporting category, not a tally of subscription products. Apple describes it as including advertising, the App Store, cloud services, digital content, AppleCare, and payment services. For third-party apps sold through the App Store, Apple says Services net sales include its retained commission, rather than the full price paid by the customer. The category also includes amortization of deferred value for certain services bundled into product sales. Those accounting rules mean the total combines different kinds of business activity.

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CIRP’s September 30, 2026 post focuses on a narrower slice: consumer payments for paid iCloud storage, Apple TV+, Apple Music, Apple Fitness+, Apple News+, and Apple Arcade. It distinguishes the Apple TV+ video service from Apple TV hardware, and says the services can be purchased individually or through Apple One bundles. CIRP also notes that its survey does not capture App Store commissions or Apple Pay transaction-processing fees. [CIRP’s post]

What CIRP says about paid iCloud

CIRP reports that more than two-thirds of recent U.S. Apple device buyers said they had paid for iCloud storage during the preceding 12 months. It describes paid iCloud storage as Apple’s most popular individual subscription service. That is a survey result about the group CIRP identifies—not an official Apple subscriber count or a claim about every Apple customer. The accessible post does not state the survey’s sample size, field dates, confidence interval, or weighting, so the figure should be read with that methodological limitation in mind.

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CIRP’s post says paid iCloud storage starts at $0.99 per month. That is the entry price reported in the post, not a complete price list; plans and prices can change. [CIRP’s post]

Does revenue make Services as important as iPhone?

Revenue answers one part of the question: Services is a large business, growing faster than iPhone in FY2025, and now brings in a little over half as much annual net sales. It does not establish equal customer reach, strategic importance, or independence from Apple hardware. Nor is Services a subscription-only line that can be compared directly with CIRP’s survey of selected services.

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Apple reported a 75.4% gross-margin percentage for Services in FY2025, compared with 36.8% for Products. The latter includes iPhone, Mac, iPad, and Wearables, Home and Accessories; Apple does not provide an iPhone-only gross-margin comparison in these figures. In dollar terms, Apple reported $82.314 billion in Services gross margin and $112.887 billion for Products. These are company-reported category figures, not evidence that every Services component has the same margin. [Apple’s FY2025 Form 10-K]

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What Apple said about the Services record

In its fiscal 2025 fourth-quarter results announcement, Apple CEO Tim Cook said: “Today, Apple is very proud to report a September quarter revenue record of $102.5 billion, including a September quarter revenue record for iPhone and an all-time revenue record for Services.” This is Apple’s characterization in an earnings announcement; the annual figures above provide the basis for comparing the two categories across FY2025. [Apple’s FY2025 fourth-quarter results announcement]

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