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Apple finds it increasingly difficult to convince people to upgrade their phones each and every year. I expect that hardware revenue will be declining over time
by duhast 5y ago
Apple finds it increasingly difficult to convince people to upgrade their phones each and every year. I expect that hardware revenue will be declining over time and will be replaced with revenue generated from services like AppStore, Music subscriptions, iCloud, TV, games and more.
You can see this trend quite clearly already: in 2012 Apple generated only 6% of its revenue from services while in 2020 it was 20%. Services tend to be also more profitable compared to hardware.
- Terretta 5y agoYour thesis is 1/2 wrong, the hardware slice isn’t declining, they’re baking a bigger pie. iPhone 12 was biggest super cycle since iPhone 7. It’s not that hardware revenue is declining so much as the flywheel is spun up for the ecosystem. … [2021] a record-breaking year for Apple, beating the previous full-year record of 231 million units sold in 2015. Apple is also benefiting from a higher average selling price, with ASPs said to be trending "higher on a positive mix" for the iPhone 12 Pro and iPhone 12 Pro Max. https://appleinsider.com/articles/21/03/22/iphone-12-supercycle-set-iphone-sales-records-in-2021 https://appleinsider.com/articles/21/03/22/iphone-12-supercy...