Every Apple (AAPL) Investor Should Keep an Eye on This Number

Core Insights - Apple's business success is heavily reliant on its services segment, which is growing at a faster rate than its hardware sales [3][4]. Group 1: Hardware Performance - Apple's iPhone continues to be a significant revenue driver, generating $44.6 billion in the third quarter [1]. - The hardware segment remains crucial to Apple's overall success, but it is not the only focus for investors [2]. Group 2: Services Segment - The services segment generated $27.4 billion in sales during the third quarter, reflecting a 13% year-over-year growth and a 108% increase compared to five years ago [3]. - Services provide recurring revenue, reducing reliance on the more volatile hardware sales [4]. - The services segment boasts a gross margin exceeding 70%, indicating higher profitability compared to hardware [4]. Group 3: Subscription Growth - Apple has over 1 billion paid subscriptions across its services, highlighting the strength of its ecosystem and user engagement [5].