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Apple's services unit is now a $100 billion a year juggernaut after 'phenomenal' growth

1. Apple's services revenue reached $25 billion, a historic high. 2. Services have phenomenal growth, now at a run rate of $100 billion. 3. High gross margin of services (74%) compared to overall margins (46.2%). 4. Apple's services business is comparable to Fortune 500 companies by sales. 5. Net income slumped due to a one-time European tax charge.

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FAQ

Why Bullish?

Strong services growth indicates robust recurring revenue potential, improving AAPL's market perception.

How important is it?

The significant rise in services revenue highlights a critical component of AAPL's growth strategy.

Why Long Term?

Sustained growth in services and subscriptions enhances AAPL's competitive positioning over time.

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