Despite the spectacle of the iPhone 17 launch, Apple's stock tumbled, losing $112 billion in market value, as investors and analysts noted a lack of revolutionary hardware innovation. The company's financial reports now reveal that its services division is outgrowing hardware sales, indicating a significant shift in its revenue model.

• Apple's services revenue reached $96 billion in 2024, now surpassing revenue from all non-iPhone gadgets.
• The iPhone's share of Apple's total revenue has decreased from a peak of 66% in 2015 to 51% in 2024.
• The Apple Watch has achieved over $100 billion in lifetime sales, showcasing a quiet success amid declining hardware growth.
• Concerns linger among investors regarding Apple's perceived slowness in the AI arms race, with reports of borrowing Google's Gemini model raising questions about its in-house innovation.