Marketers tend to simplify things down to black or white when they put a division line between their companies' b2c products and services.
One, in the gadget-obsessed world of today, any high-tech product would be used to providing or facilitating a service to or by the user. Two, there's support service associated with the product. Finally, three, a repair or maintenance service.
Your product is therefore at least three fourths a service. It should be marketed predominantly as such, too.