Installed-base monetisation continues to offset flat hardware units, with gross margin at the top of guidance.
Apple's services division posted record quarterly revenue, lifted by subscription growth, advertising and App Store commissions, as the company continues its shift toward higher-margin recurring income.
While iPhone unit volumes were roughly flat year over year, the installed base of active devices reached a new high, expanding the pool of users paying for iCloud, Apple Music, Apple TV+ and warranty services.
Gross margin for the services segment came in at the top of management's guidance range, underscoring the unit's importance as a profit engine. Executives highlighted strong double-digit growth in emerging markets, where services attach rates are still below those in North America and Western Europe.
Investors are watching whether regulatory pressure on app-store fees could temper growth in the second half of the year. For now, the segment remains a key reason many analysts are comfortable with the stock's premium valuation.