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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchApple makes money by selling iPhones, Macs, iPads, wearables and accessories, and digital and other services. The iPhone is its largest revenue category; Services is the second largest and is growing faster. In fiscal 2025, Apple reported $416.161 billion in net sales, including $209.586 billion from iPhone and $109.158 billion from Services.
Apple’s five revenue categories
Apple reports net sales in five categories rather than treating every product and service as a separate business. The table shows its fiscal 2025 results, the year-over-year change where reported, and what each category includes. FY2025 ended September 27, 2025, and covered 52 weeks.
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| Category | FY2025 net sales | Change from FY2024 | What it includes |
|---|---|---|---|
| iPhone | $209.586 billion | Up 4% | iPhone smartphones |
| Services | $109.158 billion | Up 14% | Advertising, AppleCare, cloud services, App Store and digital content, subscriptions, Apple Card and Apple Pay |
| Wearables, Home and Accessories | $35.686 billion | Down 4% | Apple Watch, wireless headphones, spatial computers, Apple TV 4K, HomePod, and Apple-branded and third-party accessories |
| Mac | $33.708 billion | Up 12% | Mac laptops and desktops |
| iPad | $28.023 billion | Up 5% | iPad tablets |
| Total | $416.161 billion | — | Apple’s total net sales |
These are Apple Inc.’s reported fiscal-year net sales, not units sold or profit. The category figures and descriptions come from Apple’s FY2025 Form 10-K.
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iPhone: the largest source of sales
At $209.586 billion, iPhone generated just over half of Apple’s FY2025 net sales. Apple said the category rose 4%, primarily because of higher sales of Pro models. Its filing names the iPhone 17 family, iPhone Air, iPhone 16 and iPhone 16e among the products in the lineup.
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Services: a large and faster-growing category
Services brought in $109.158 billion, up 14% year over year. Apple attributed the increase primarily to advertising, the App Store and cloud services. The category also includes paid AppleCare support and repair coverage, Apple Music, Apple Arcade, Apple Fitness+, Apple News+, Apple TV, Apple Card and Apple Pay.
Mac and iPad
Mac sales increased 12%, primarily on higher laptop and desktop sales. iPad sales rose 5%; Apple attributed the increase primarily to iPad Air, iPad mini and iPad, partly offset by lower iPad Pro sales.
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Wearables, Home and Accessories
This category fell 4%, primarily because of lower Accessories and Wearables sales. It groups together products as varied as Apple Watch, headphones, spatial computers and home devices, so its total does not represent one product line alone.
Which parts of Apple’s business are most profitable?
Apple reported a 75.4% gross margin for Services and 36.8% for Products in FY2025. These are gross margins for the combined Services and Products groupings, not separate margins for iPhone, Mac, iPad or any individual service. Gross margin is also not operating income or net profit: it does not account for all of the company’s operating expenses, taxes and other costs.
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Apple said the higher Services gross margin percentage reflected a different mix of services, partially offset by higher costs. The figures indicate that Services generated more gross profit per dollar of sales at the gross-margin level in that year; they do not establish that Services alone contributed more total profit than iPhone.
How Apple recognizes revenue
Products and bundled services
Apple generally recognizes product revenue when control of the product transfers to the customer, usually when it ships. In some iPhone, Mac and iPad arrangements, Apple allocates part of the purchase price to services bundled with the device, including iCloud, Siri and Maps. It defers that allocated amount and recognizes it over the estimated period in which those services are provided. As a result, some Services revenue is connected to products sold earlier rather than a separate subscription payment made in the same period.
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Subscriptions, platforms and App Store commissions
Service revenue is generally recognized over time as Apple provides the service. For third-party apps sold through the App Store, Apple recognizes the commission it retains—not the full retail price paid for the app—as Services net sales. Apple says it does not control a third-party app before it is transferred to the customer. Counting the entire app purchase as Apple revenue would therefore overstate its reported sales.
How Apple sells its products and services
Apple sells through its stores and online store, its direct sales force, and indirect channels that include cellular carriers and other resellers. In FY2025, direct channels accounted for 40% of total net sales and indirect channels for 60%. That is a company-wide distribution split, not a disclosure of which channel sold each product category.
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Where Apple’s FY2025 sales came from
Apple reports geographic segments using its own regional groupings; for example, India, the Middle East and Africa are included in Europe. FY2025 sales and year-over-year changes were:
| Reportable segment | FY2025 net sales | Year-over-year change |
|---|---|---|
| Americas | $178.353 billion | Up 7% |
| Europe | $111.032 billion | Up 10% |
| Greater China | $64.377 billion | Down 4% |
| Japan | $28.703 billion | Up 15% |
| Rest of Asia Pacific | $33.696 billion | Up 10% |
Apple attributed Greater China’s decline primarily to lower iPhone sales, partly offset by higher Mac sales. The segment definitions and sales figures are in the FY2025 Form 10-K.
What Apple’s latest reported quarter adds
The latest quarter covered in Apple’s reporting here is Q3 FY2026, the three months ended June 27, 2026. Apple reported unaudited net sales of $109.417 billion, up from $94.036 billion in the same quarter a year earlier. Its category sales were:
| Category | Q3 FY2026 net sales |
|---|---|
| iPhone | $54.252 billion |
| Services | $30.739 billion |
| Mac | $10.352 billion |
| Wearables, Home and Accessories | $7.883 billion |
| iPad | $6.191 billion |
For the first nine months of FY2026, Apple reported $364.357 billion in sales. The quarter and year-to-date category figures are from its Q3 FY2026 Form 10-Q; the company’s July 30, 2026 results release described June-quarter records for iPhone, Mac and Services. These are fiscal-quarter figures, not calendar-quarter totals.
What the revenue mix says—and what it does not
- iPhone anchors sales. It generated about half of FY2025 net sales, making it Apple’s largest reported category.
- Services is a substantial second engine. Its sales were more than half the iPhone category’s FY2025 sales and grew faster than Products overall.
- The other hardware categories matter. Mac, iPad and Wearables, Home and Accessories are separately reported and should not be folded into iPhone.
- Revenue share is not profit share. Apple’s reported margin comparison is between Products and Services as broad groupings, not between individual categories.
Apple’s FY2025 annual figures and accounting explanations are in its Form 10-K; the newer quarterly figures are in its Q3 FY2026 Form 10-Q.
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