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Apple (NASDAQ: AAPL) has been a wonderful investment in recent years, rising 226% in the past five years (as of Aug. 21), crushing the Nasdaq Composite index‘s 72% gain during the same time. That return has benefited Warren Buffett’s Berkshire Hathaway, since the conglomerate has a 5.9% stake in the tech business.
Apple’s popular product lineup includes the iPhone — arguably the greatest piece of hardware ever invented — which still accounted for 49% of company revenue last quarter. But the company is seeing success in other areas that are driving financial results and the stock price. A smaller division might define the business over the next two decades.
Let’s take a closer look at the company’s budding services segment.