I looked into it[1], their net profit margins were 32% last quarter. 36% gross margins on hardware products (iPhone, Mac, etc) and 70% gross margins on services

I looked into it[1], their net profit margins were 32% last quarter. 36% gross margins on hardware products (iPhone, Mac, etc) and 70% gross margins on services (AppleCare, Cloud Services, etc.). However services only comprise 19% of their sales, the other 81% of their sales are from hardware products (mostly iPhones). Their service sales seem to all stem from them making the hardware. For example the AppStore walled garden is protected by the hardware, AppleCare services their hardware, and Cloud services are integrated into their devices, etc. It may be possible in the future for apple to get high margin "service" sales from an Apple Car App Store, buying games and movies for your self driving car, for example. Regardless I'd definitely consider Apple a hardware company. [1] https://www.apple.com/newsroom/pdfs/FY21_Q2_Consolidated_Financial_Statements.pdf https://www.apple.com/newsroom/pdfs/FY21_Q2_Consolidated_Fin...