AAPL · 10-K · 2025A · Full report

Services Growth and Mix

Apple Inc. · 2025-10-31 · Importance 54 · Surprise 40 · No source text

Services net sales grew to $109,158 million in fiscal 2025 from $96,169 million in 2024, an increase of $12,989 million (≈13.5% year-over-year), driven primarily by advertising, the App Store and cloud services. Services now represent a substantially larger portion of revenue and contributed meaningfully to Services gross margin expansion (Services gross margin $82,314 million). The filing notes amortization of deferred value for bundled services, indicating ongoing product+service bundling economics. Growth in advertising and cloud services points to expansion in software and platform monetization beyond device sales.

Key facts

• Services gross margin for 2025 was $82,314 million and services gross margin percentage was 75.4%. source
• Services net sales include amortization of the deferred value of services bundled in the sales price of certain products. source
• Services gross margin percentage increased in 2025 compared to 2024 primarily due to a different mix of services, partially offset by higher costs. source
• Services gross margin increased during 2025 compared to 2024 primarily due to higher Services net sales and a different mix of services. source

Impact estimates