Apple's Revenue Shift: From iPhone Dominance to Service-Driven Growth

Apple's revenue composition has undergone significant changes since its introduction of the iPhone in 2007. A chart breaking down Apple's (AAPL) revenue reveals that while the iPhone segment peaked at 66% in fiscal 2015, it has been narrowing ever since. Meanwhile, the Services segment has more than doubled compared to fiscal 2019.

In fact, by fiscal 2028, consensus forecast predicts a total of $557 billion in revenue, with the iPhone segment accounting for $293.5 billion, while Services will contribute $153.4 billion.

While it is essential not to misinterpret this trend, as declining share does not necessarily mean decline in absolute revenue, Apple's evolution into a services company seems inevitable. The question remains whether investors still view Apple as an 'iPhone company' or if they see the shift towards services as a significant change in its business model.