Apple Set to Cross $100 Billion in Services Revenue in 2025: Report

Apple’s booming Services business is set to reach a new milestone, with annual revenue expected to surpass $100 billion for the first time, according to a new report from the Financial Times (via MacRumors).

Citing analyst estimates from Visible Alpha, Apple’s Services division is projected to generate $108.6 billion in the fiscal year ending last month — up roughly 13% from the previous year and a record high. If the estimates hold when Apple reports its Q4 results this week, Services will have generated more revenue than the annual sales of companies like Disney or Tesla.

JPMorgan analysts believe Services could now represent about a quarter of Apple’s total revenue, but as much as half of its overall profit, thanks to its high-margin structure. The division includes revenue from the App Store, iCloud, Apple Music, Apple TV+, Apple Arcade, AppleCare, and Apple Pay, as well as Apple’s multibillion-dollar agreement with Google to make it the default search engine on iOS devices.

Apple’s Services business has become one of the company’s fastest-growing segments, even as it faces mounting legal and regulatory challenges worldwide. In the U.S., the Department of Justice is pursuing an antitrust case over the App Store’s practices, while in the U.K., Apple recently lost a landmark £1.5 billion lawsuit tied to App Store fees.

Despite that scrutiny, Apple’s ecosystem continues to expand. Earlier this year, a new economic study revealed that the App Store powered an estimated $1.3 trillion in developer sales globally in 2024, underscoring its immense economic impact.

Analysts expect Apple’s Services revenue to keep climbing in the years ahead, potentially reaching $175 billion annually by the end of the decade. The growth is being fueled by Apple’s continued expansion into subscription media and live sports, including its recent $700 million deal to stream Formula 1 races in the U.S.

Apple is scheduled to report its fiscal Q4 2025 earnings after markets close on Thursday, October 30.