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Apple’s services upside gave the company a profit boost, one analyst noted.

The company turned in $27.4 billion in services revenue for the June quarter, up from $24.2 billion a year before, while analysts had been modeling $26.8 billion.

The services performance contributed to Apple’s big revenue beat, but it also should have aided margins as well, according to Evercore’s Amit Daryanani. Services are a higher-margin portion of Apple’s business, with a 75.6% gross margin in the June quarter. That likely helped Apple’s overall company gross margin of 46.5% top the 45.9% consensus view.