From CNBC: 2025-01-30 17:49:56

Apple’s iPhone sales dipped slightly, but its services business is booming, leading to a record-high profit margin of 46.9%. Services revenue increased by 4% to $26.34 billion, now making up 21% of Apple’s overall revenue. CEO Tim Cook highlighted the success of the services business during the holiday season, driving the stock to rise 31% last year.

Apple’s move into services has transformed Wall Street’s view of the company, with analysts recommending buying the stock due to its premium electronic consumer devices and high-margined digital services. The company’s market cap has reached $3.6 trillion, and its gross margin has increased to 40% in 2021. Apple shares rose over 3% in extended trading after the earnings report.



Read more at CNBC:: Apple’s gross margin hits record as services business keeps growing