Services might be better, but I suspect that budget conscious consumers would also spend less on services, compared to customers willing to spend $1200 on an iP

Services might be better, but I suspect that budget conscious consumers would also spend less on services, compared to customers willing to spend $1200 on an iPhone XS. I imagine their FP&A team has done pretty thorough analysis that the extra sales from fewer products at higher margins will offset the incremental increase in revenue from more (potentially lower value) services subscribers.