And because the services have much higher margin, the earnings story is even better.
Products are 42.4 - 29.5 = 13 ish
Services are 11.5 - 4.1 = 7ish
If the iphone has the same margins as the other products, and about half the product sales are iphones, the services are producing more earnings than the iphone!
(To be clear: the services are delivered through the iphone, so its not like the iphone is not a key part of the services.)
Products are 42.4 - 29.5 = 13 ish Services are 11.5 - 4.1 = 7ish
If the iphone has the same margins as the other products, and about half the product sales are iphones, the services are producing more earnings than the iphone!
(To be clear: the services are delivered through the iphone, so its not like the iphone is not a key part of the services.)
Source https://www.apple.com/newsroom/pdfs/Q3%20FY19%20Consolidated...