Technology

Apple Services Revenue Hits Decade High as iPhone Shipments Stall

A record quarter for the App Store, iCloud and advertising offset softer hardware sales, underscoring Apple’s pivot to recurring revenue.

By Mark Gurman·Apr 17, 2026·5 min read·2d ago

Apple’s services business generated $27.8 billion in revenue in the March quarter, the highest in the company’s history, helping offset a 3% decline in iPhone shipments.

Chief Financial Officer Luca Maestri said services gross margin expanded to 75%, a level he described as “structurally sustainable.”

Investors cheered the shift, sending the stock to a fresh all-time high in after-hours trading.

AppleEarnings

More Top Stories

See all →