Analyzing Apple financial statements: products vs. services

As a software developer for Apple platforms, I’ve spent quite a bit of time over the years attempting to understand Apple financial statements, though I’m admittedly not an expert in corporate finances. This blog post is for other non-experts who are also interested in Apple finances. I originally became interested in Apple quarterly reports and financial statements because I wanted to see the unit sales of Apple hardware: Mac, iPhone, iPad. Unfortunately, Apple ended its longtime practice of reporting unit sales in 2018. Another significant change since then is the increased prominence of so-called “services” in Apple finances. In the second fiscal quarter of 2018, services generated $9 billion in revenue (net sales), whereas in Q2 2026, that amount had grown to $31 billion! In this blog post, I want to focus on understanding the relative financial importance of products and services for Apple. The Apple 2025 Form 10-K, filed with the US Securities and Exchange Commission, provides…