Apple Services: A Beast of Its Own

Considering that Apple is still thought of as a hardware company and that its products grab most of the headlines, it’s easy to underestimate the size of Apple’s services segment, which includes the App Store, iCloud and Apple Care as well as Apple Music, Apple TV+ and Apple Pay, among others. While clearly overshadowed by the immense size of the iPhone business, Apple’s services segment has grown into a beast of its own in recent years. In the first three months of 2023, it generated almost $21 billion in revenue, making it larger than many Fortune 500 companies, including household names such as Nike, Boeing, Coca-Cola or McDonald’s.