Apple Services generated $109.158 billion in net sales in fiscal 2025, compared with $209.586 billion for iPhone—about 52.1% as much. That makes Services a major and rapidly growing business, but not nearly equal to iPhone in revenue. The comparison is about reported sales, not customer counts, standalone subscriptions, or overall strategic importance.
How the revenue comparison looks
Apple’s fiscal 2025 ended September 27, 2025. Its Form 10-K reports net sales of $109.158 billion for Services and $209.586 billion for iPhone. Services therefore generated about 52.1 cents for every dollar of iPhone net sales. Apple reported total net sales of $416.161 billion, making Services about 26.2% of the total and iPhone about 50.4%. These percentages are calculations from Apple’s reported figures, not separate company-reported metrics. Apple’s fiscal 2025 Form 10-K
| Apple reported net sales | 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% |
All figures are Apple-reported net sales in U.S. dollars. Apple’s fiscal years do not align exactly with calendar years; FY2025 ended September 27, 2025. Services’ share of iPhone revenue rose from about 42.4% in FY2023 to 47.8% in FY2024 and 52.1% in FY2025, calculated from Apple’s reported figures. The prior fiscal year, Services grew 13% while iPhone net sales were nearly flat. Apple attributed FY2025 Services growth primarily to advertising, the App Store, and cloud services, and said higher iPhone Pro model sales contributed to the iPhone increase. Apple’s fiscal 2024 Form 10-K
What Apple includes in Services
Services is a broad financial-reporting category, not a tally of Apple’s 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 recognizes its retained commission—not the full app purchase price—as Services net sales. Services also includes amortization of deferred value for certain services bundled with products. Apple’s fiscal 2025 Form 10-K
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That accounting scope matters: the comparison is one product category, iPhone, against a collection of service-related activities. It does not establish how many people subscribe to Apple services, whether Services is independent of Apple devices, or which business is more strategically important.
What CIRP says about individual services
In a September 30, 2026 post, CIRP analysts Michael Levin and Josh Lowitz described Services as Apple’s second-largest revenue source and said CIRP tracks consumer use of paid iCloud storage, Apple TV+, Apple Music, Apple Fitness+, Apple News+, and Apple Arcade. The post distinguishes Apple TV+ the video service from Apple TV hardware and notes that the services can be purchased individually or through Apple One bundles. CIRP also says its survey cannot track App Store commissions or processing fees from Apple Pay transactions. CIRP: “Apple Services is Almost as Important as iPhone”
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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, calling paid iCloud storage Apple’s most popular individual subscription service. That is a CIRP-reported survey result for the stated group, not an official Apple subscriber count. The accessible post does not provide sample size, field dates, confidence interval, or weighting information, so the result should not be treated as a precisely documented population estimate. CIRP also says paid iCloud storage starts at $0.99 per month; that is the post’s time-sensitive entry-price statement, not a full or independently verified current price list. CIRP’s post and survey statement
Revenue is not the same as profit
Apple reported a 75.4% gross-margin percentage for Services in FY2025, compared with 36.8% for Products. Services gross margin was $82.314 billion; Products gross margin was $112.887 billion. The Products category includes iPhone, Mac, iPad, and Wearables, Home and Accessories, so those figures do not provide an iPhone-only margin comparison. They show that Apple reported a higher gross-margin percentage for Services than for its combined Products category, not that Services generated more gross-margin dollars or profit than iPhone. Apple’s fiscal 2025 Form 10-K
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How to read “almost as important”
The phrase is defensible as a shorthand for Services’ scale and growth, provided “important” is understood as revenue scale rather than equivalence. In FY2025, Services revenue was a little over half of iPhone revenue and grew faster year over year. But iPhone remained Apple’s largest reported category by a wide margin, and the two categories are not directly comparable in scope.
Apple CEO Tim Cook called the September 2025 quarter a revenue record for both iPhone and Services in Apple’s FY2025 fourth-quarter announcement. That is Apple’s characterization of its quarterly results, not an independent measure of the two businesses’ relative importance. Apple’s fiscal 2025 fourth-quarter results announcement
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