Thanks to Apple’s ability to keep its smartphone competitive with new releases and updates, the iPhone has been the tech giant’s most successful product since its introduction to the market in 2007, consistently generating most of its revenue. However, when it comes to revenue growth over the past decade, Apple Services has surged far ahead of the iconic smartphone.
According to data presented by AltIndex.com, Apple’s services revenue grew by an astounding 433% in ten years, outpacing iPhone growth by four times.
Apple Services Generated $96 Billion in Revenue in 2024, 5x more than Ten Years Ago
Over the years, Apple has created a variety of services to enhance its ecosystem. From Apple Music, iCloud, and Apple Fitness+ to Apple TV+ and Apple Arcade, all of them have millions of users across the world today. By seamlessly integrating them with its devices, the tech giant has turned its services into a thriving revenue stream.
According to Statista and the official company data, Apple earned around $18 billion from its services in 2014, roughly 30% less than from Mac and iPad sales and five times less than from iPhone sales. By the end of 2020, this figure had soared to $53 billion, showing a massive 195% increase in six years.
However, Apple’s services growth didn’t stop there, with growth rates accelerating further in the last four years. After reaching $68 billion in 2021, the services revenue jumped to $85 billion in 2023, and then hit an all-time high of $96.1 billion last year. This represents a massive 433% growth in a decade, far outpacing any other segment of Apple’s business.
In comparison, iPhone sales jumped by 97% in this period, rising from $101 billion to $201 billion. Mac sales climbed modestly by 12%, at least by Apple’s standards, generating $27 billion last year. Statistics show that the iPad was the only segment of Apple’s business that saw a decline, with revenue falling by 10% in a decade.
Apple Services Revenue Share Almost Tripled
Thanks to impressive triple-digit growth, Apple’s services segment has also significantly increased its share of the company’s total revenue. Ten years ago, the services segment made up just 9.9% of Apple’s total revenue; by 2024, they accounted for 24.3%.
The iPhone, Apple’s flagship product, still commands the largest revenue share. Its premium models, especially the Pro versions, have helped Apple dominate the smartphone market and outperform competitors like Samsung. In 2024, iPhone sales made up 51.5% of Apple’s total revenue, slightly down from its 55% share a decade ago.
