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Apple absolutely doesn't HAVE to make money on the hardware, they could sell them at a loss and still rake in billions thanks to the AppStore.
by burnte 5y ago
Apple absolutely doesn't HAVE to make money on the hardware, they could sell them at a loss and still rake in billions thanks to the AppStore.
- marricks 5y agoThat's a good point!
- dev_tty01 5y agoServices (App store, Music, TV, ...) accounted for 21% of revenue last quarter. The rest is hardware. App store is some fraction of that 17 billion services revenue. Hardware was 64 billion. So yes they could make billions in services, but it pales in comparison to their hardware revenue. Also, services revenue doesn't happen without selling a huge amount of hardware first, and building the ecosystem, ... All of that had to happen for years before services revenue started to become significant.
- burnte 5y agoRevenue, but a much larger part of the profit.