^^Does anyone know where the fees received from Google are accounted for?^^

That's a good question. Other than a secret envelope, I'm not sure where it is accounted. Given the large amount involved it is spectacular how it was obscured from discussion for so many years. I am curious if the fee was paid by Google to Apple right from the first iPhone release even if it started much smaller and kept expanding.

I am also curious if the free is structured as a revenue-sharing agreement rather than a fixed amount. Apple might receive cash from Google based on the revenue generated from Google's search ads on Apple devices.

In their income statement they are super brief and just divide revenue into products ($295B last 12 months) and services ($96B last 12 months). So the Goole will will definitely fall under services, but that's so board it doesn't tell us much. Still it is impressive that services are one third of the entire income.

apple.com - Q4 Consolidated Financial Statements

^^Services Revenue is nearly $25B(+12% YoY), or roughly 28% of total revenue now.^^

I know -- but it is far more spectacular if you compare services and product profit rather than revenue.

These 4 figures are shown above for trailing 12 months --

Product revenue -- $298B
Product cost -- $189B
Services revenue -- $85B
Services cost -- $25B

Services are 33% of the Product revenue. But what about the profit?

Product profit -- $109B
Services profit -- $60B

Whoa.. Unless I am missing something, the services are 55% of Apple's profit!! The R&D is $30B which has to be taken off also but that is likely split between fairly closely between products and services.

I did not read anywhere that more than half of Apple's value is generated from services. Obviously there is a symbiosis and they need products and services together but if you subtract the costs from product and services separate it is amazing that the services profit ($60B) is catching up to the profit from products ($109B).