Services’ share of Apple’s revenue quarterly FY 2015-2026

Revenue from services as a share of Apple's total revenue worldwide from fiscal 3rd quarter 2015 to 1st quarter 2026

Services is not just growing at Apple, it is taking over a larger slice of the whole. Measured as a share of Apple total revenue, the Services segment has climbed from about 10 percent in 2015 to a peak near 29 percent in recent summer quarters. This report tracks that share every quarter from fiscal Q3 2015 to the first quarter of fiscal 2026.

The share moves in a distinctive sawtooth. It dips sharply in each December holiday quarter, when iPhone sales dominate revenue, and rises in the quieter summer quarters, when hardware sales ebb and steady Services revenue carries more weight. The dollar size of that Services revenue is tracked in our Apple Services revenue analysis; here the focus is purely on its share of the total. The percentage, not the dollar figure, is what reveals the shift in Apple business model. Dollars show growth; the share shows transformation. Both matter, but the share carries the bigger message. A growing share proves Services is winning relative ground, not just adding revenue. That distinction is what investors prize. They reward proof of a changing mix more than raw growth alone. A rising share is the evidence they look for. Nothing demonstrates the shift more plainly.

This share matters because Services carries far higher margins than hardware. As it claims a larger fraction of revenue, it claims an even larger fraction of profit, lifting Apple overall profitability. The rising share is one of the clearest signals of how the company business model is shifting from one-off device sales toward recurring, high-margin income. That shift is the single most important change in how the company earns money. It reshapes margins, valuation and risk all at once. Few metrics touch so many parts of the business. From gross margin to the price-earnings multiple, the share ripples through Apple financial profile. Its rise has helped justify a richer valuation.

A note on the data. Each quarter share is Services revenue divided by total company revenue, expressed as a percent. The most recent quarters are computed from reported figures; earlier Services quarters are split from reported annual totals using the segment seasonal pattern, so individual percentages before fiscal 2024 are approximate. Apple also revised its Services definition around 2018. Where that affects the figures, the broad trend remains reliable even if exact quarters vary. The direction of travel is beyond doubt. Only the precise speed is open to question. Whether the share climbs fast or slow, its long-run direction looks settled. The debate is about pace, not path. Almost no analyst expects the share to reverse. The structural drivers all point the same way. An expanding installed base keeps feeding the segment.

Services Share of Apple Revenue by Quarter, FY 2015-2026

The table lists the Services share of Apple revenue for every quarter from fiscal Q3 2015 to fiscal Q1 2026. The values range from under 8 percent in early holiday quarters to above 29 percent in recent summer quarters. Sorting the columns reveals both the strong seasonal swing between quarters and the steady upward march of the share over time. Both forces are visible at once in the same column of numbers. Trend and season are tangled together in every quarter. Separating them is the key to reading the data. Confusing a seasonal dip for a real decline is the most common mistake. The trend line exists precisely to avoid it.

More Than Doubled

Averaged across each fiscal year, the rise is unmistakable. The Services share of Apple revenue grew from roughly 11 percent in fiscal 2016 to about 26 percent in fiscal 2025, more than doubling in nine years. The fiscal 2026 figure shown reflects only the first quarter, the holiday quarter, which always reads lower than the annual average. The holiday quarter is the weakest point of the year for the Services share. It is also the loudest, drawing the most attention. The holiday quarter sets headlines but understates the share. Its low reading reflects strong hardware, not weak Services. The summer quarter tells the opposite story.

The climb has been steady rather than sudden. The annual share rose by roughly two percentage points a year through the late 2010s, accelerated around 2019 and 2020, then continued its ascent through the 2020s. Only fiscal 2021 broke the pattern, when an exceptional iPhone super-cycle temporarily lifted hardware revenue and held the Services share flat, as our A rare burst of hardware strength briefly outpaced even fast-growing Services, as our Apple iPhone revenue analysis shows.

Behind the annual averages lies a simple arithmetic: Services revenue has grown faster than the company as a whole in almost every year. Whenever one segment consistently outgrows the total, its share must rise, and that is exactly what has happened, even as Apple total revenue itself expanded strongly over the decade. Gaining share against a rising total is the harder, more telling kind of growth. It can only happen when a segment truly outpaces the whole. That is the strongest possible signal of a structural shift. Mere growth can flatter a segment; gaining share proves it. Apple Services has done both for a decade. Growing fast and gaining ground at the same time.

Stripping Out the Seasons

Stripping out the seasonal swing shows the underlying trend with great clarity. A trailing four-quarter average of the share smooths the sawtooth into a clean rising line, climbing from around 12 percent in 2015 to roughly 27 percent by late 2025, with only the briefest of pauses along the way.

The smoothed trend makes the structural nature of the shift obvious. This is not a temporary blip driven by one strong quarter, but a sustained, multi-year re-weighting of Apple revenue toward Services. The line bends gently upward year after year, reflecting the compounding effect of a segment that grows faster than its parent, a pattern echoed in our The compounding is relentless and broad-based, a dynamic echoed in our Apple total revenue analysis.

The trend also shows how far the shift still has to run. At roughly a quarter of revenue on a smoothed basis, Services is large but not yet dominant; the iPhone still accounts for around half of company revenue. If the current trajectory holds, the Services share will continue to creep higher, though the pace may ease as the base grows. Even a slowing climb would still lift the share to new highs. The ceiling keeps moving even as the steps shorten. Each summer sets a fresh high-water mark. The June quarter has become the bellwether for the whole trend. Where it goes, the annual average tends to follow. It leads the structural story by a year or more. The annual average always catches up eventually.

The Holiday-to-Summer Swing

The most striking feature of the data is its seasonality. The Services share is lowest in the first fiscal quarter, the December holiday period, when a surge of iPhone and other hardware sales swells total revenue and pushes the Services fraction down, often by five to ten percentage points below the summer peak.

The share peaks in the third fiscal quarter, the June quarter, when hardware sales are at their seasonal low and the steady Services revenue carries proportionally more weight. The gap between the holiday trough and the summer peak can exceed eight percentage points within a single year, a far larger swing than the gentle seasonality of Services revenue itself.

This pattern is essentially a mirror of Apple hardware seasonality. Because Services revenue is smooth while device sales spike in the holiday quarter, the share inevitably falls when hardware is strong and rises when it is weak. The seasonality of the share says less about Services than about the powerful holiday rhythm of the iPhone and hardware lines like the iPad, whose own seasonal swings are detailed in our Apple iPad revenue analysis.

Records and a Holiday Dip

The most recent quarters show the share at historic highs, but also its seasonal volatility. In the summer of fiscal 2025 the Services share reached about 29 percent, its highest ever, before falling back to roughly 21 percent in the fiscal 2026 holiday quarter, even though Services revenue itself set an all-time record that quarter. The two facts together capture the seasonal illusion at the heart of the data. A record and a dip, side by side, in the same three months. The numerator soared while the ratio slipped. It is a reminder that share and size are different things. A record quarter can still see the share fall. Size and proportion move to different rhythms. One can rise while the other falls. The fiscal 2026 holiday quarter proved it vividly.

That fiscal 2026 holiday dip is a perfect illustration of the seasonal effect. Services revenue hit a record 30 billion dollars, yet its share fell, because total revenue surged to 143.8 billion dollars on the back of an exceptional iPhone quarter. A record in dollars and a dip in share happened at the very same time, a contrast set out in our It is a textbook case of a ratio falling while its numerator rises, detailed in our Apple revenue by segment analysis.

Read correctly, the recent data shows a share that is both rising and seasonal. Each summer peak is higher than the last, and each holiday trough is higher than the one before, so the whole sawtooth is marching upward. The headline number in any given quarter depends heavily on which part of the fiscal year it falls in.

Peaks and Troughs Both Rising

Tracking the highest and lowest share in each fiscal year captures both the trend and the seasonal range. Both the annual peak and the annual trough have risen steadily, from a peak near 14 percent and a trough near 8 percent in 2016 to a peak near 29 percent and a trough near 21 percent in 2025.

The band between the two has stayed wide throughout, usually six to nine percentage points, reflecting the persistent gap between the holiday quarter and the summer quarter. This durable range means the same year can show very different Services shares depending on the quarter, which is why looking at a single quarter in isolation can mislead. The annual range tells a fuller story than any one reading. It frames each quarter against its own year. A high or low only means something in that context.

That both edges of the band have risen together is the clearest proof of a structural shift. It is not that one unusual quarter pulled the average up; rather, the entire range has moved higher year after year, lifting both the best and worst quarters for the Services share in lockstep, much as we see across Apple segments in our Apple Mac revenue analysis.

Crossing the Thresholds

The share has passed a series of milestones on its way up. It first crossed 10 percent of Apple revenue in fiscal 2015, reached 15 percent around fiscal 2017, surpassed 20 percent in fiscal 2019, and broke through 25 percent in fiscal 2023, before peaking near 29 percent in fiscal 2025.

Each threshold was first breached in a summer quarter, when the share is seasonally highest, and only later became the norm across the whole year. The 20 percent level, for instance, was first touched in a June quarter years before the annual average reached it, showing how the seasonal peaks lead the structural trend.

These milestones turn an abstract trend into concrete steps. A segment that was a tenth of Apple revenue a decade ago is now, at its seasonal peak, approaching a third of it. That progression, from a tenth to nearly a third, is among the most important structural changes in Apple finances, on a par with shifts tracked in our Few re-weightings of a major company revenue have been so sustained, a scale set out in our iPad share of revenue analysis.

A Step Up Each Period

Grouping the quarters into eras shows the average share stepping up over time. In fiscal 2016 to 2017 the Services share averaged around 12 percent; by fiscal 2020 to 2021 it had risen to roughly 19 percent; and in fiscal 2024 to 2026 it averages about 25 percent, more than double the early-period figure.

Each era reflects a different phase of Apple business. The early period was still firmly hardware-led, with Services a useful but minor contributor. The middle period saw Services scale rapidly as subscriptions and the App Store grew. The latest era shows Services established as a major pillar, routinely a quarter or more of revenue.

The era view filters out the quarterly noise to show the steady structural march. Each block of years sits clearly above the one before, with no era reversing the gains of its predecessor. This consistency is what makes the rising Services share one of the most dependable trends in Apple financial story, reinforcing the segment value in our Apple net income analysis.

The Rising Ceiling

Focusing on the third fiscal quarter alone, the seasonal peak, shows the ceiling rising relentlessly. The June-quarter Services share climbed from about 10 percent in fiscal 2015 to roughly 17 percent in 2018, 22 percent in 2020, 26 percent in 2023 and 29 percent in 2025, the highest figure in the entire series.

These summer peaks matter because they show where the share reaches when hardware is at its weakest, a preview of where the annual average may head in future. Each year the peak has set a new high, suggesting the structural ceiling on the Services share is still rising rather than levelling off.

If the June-quarter share continues its climb, it will approach a third of Apple revenue within a few years, a remarkable threshold for a segment that barely registered a decade ago. The summer peak has become the leading indicator of how far Services can ultimately reshape Apple revenue mix, a question framed in our big tech revenue comparison analysis.

Where the Quarters Sit

Looking at how the 43 quarters distribute across share bands gives a sense of the overall picture. A handful of early holiday quarters sit below 15 percent, a large group clusters in the 15 to 25 percent range that has dominated recent years, and a growing number of summer quarters now exceed 25 percent.

The shape of this distribution has shifted over time. A decade ago, nearly every quarter sat below 15 percent; today, most fall above 20 percent, and the highest band, above 25 percent, is populated entirely by recent quarters. The centre of gravity of the whole distribution has moved steadily to the right.

This distribution underlines the central finding: the Services share has not merely touched higher levels in a few standout quarters, but has shifted its entire range upward. What was once an exceptional reading, a quarter above 20 percent, is now the everyday norm, a re-rating that has reshaped how Apple is valued, as our biggest companies by market value analysis reflects.

Services share of Apple revenue tells the story of a company in transition. From about 10 percent in 2015 to a peak near 29 percent in 2025, the share has risen relentlessly, even as it swings sharply with the seasons, dipping in each iPhone-heavy holiday quarter and peaking in the quieter summer months. Both the peaks and the troughs have climbed year after year.

More than any single figure, it is the direction that matters. A higher Services share means more recurring, higher-margin revenue, a steadier business and a profile that investors increasingly value like a software company rather than a hardware maker. For a company long defined by the iPhone, the steady rise of the Services share is the clearest measure of how Apple is changing, a shift set in the wider context of our Apple Vision Pro price list analysis of where the company is investing next.

Frequently Asked Questions: Services Share of Apple Revenue