Services Boost Apple's Profit Margin

Services have not only been Apple’s main growth driver over the past decade, but they have also helped the company become even more profitable. In fiscal 2025, Apple’s gross margin reached a record level of 46.9 percent, up from just under 40 percent in 2017. As our chart shows, the gross margin for Apple’s products has remained relatively stable during that time, going from 35.7 percent in 2017 to 36.8 percent in 2025. Meanwhile, the gross margin of Apple’s services improved from 55 percent to 75 percent.

The positive effect of growing services margins was further amplified by Apple’s growing reliance on the segment. In 2017, services accounted for 13 percent of Apple’s total sales. By 2025, that share had doubled to 26 percent as services became a $100-billion business for Apple. These numbers highlight how important services have become to Apple - not only from a growth perspective, but also from a profitability point of view.