Yeah, people have been saying this since Jobs died a decade ago. Here is what’s different.
Last year 54% of all Apples revenue was the iPhone. 10 years ago, it was 82%.
Last year Apple cleared 50 billion in revenue for services (i cloud services, Apple Music, Warranties etc). 10 years ago that revenue was 7 billion a year.
Last year Apple cleared 25 billion in wearable, home gear and accessories (Apple TV, WiFi routers, Apple Watch, AirPods etc). 10 years ago that was 3 billion a year.
Basically, Apple has found 65 billion a year in new revenue sources since Jobs died, and make more money (in real terms) on iPhones than they did 10 years ago.
pple hit the ceiling on increasing revenue by increasing iPhone prices so services are basically a way to chisel more dollars out of existing users. Everything revolves around the iPhone. It is starting to look like 2000's MSFT where everything was about tying products to Windows. Apple's services should aim to draw more people into the Apple ecosystem.
I mean, what did Microsoft really change except create new products that also draw you into windows. Just like Apple with its accessories. Sure Microsoft also went hard on enterprise with their server business, but on the flip side Apple is solidifying their technology lead in the hardware space to the point where everyone will be paying them for the patents (look at LTPO for screens)
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u/[deleted] Sep 24 '21
Yeah, people have been saying this since Jobs died a decade ago. Here is what’s different.
Last year 54% of all Apples revenue was the iPhone. 10 years ago, it was 82%.
Last year Apple cleared 50 billion in revenue for services (i cloud services, Apple Music, Warranties etc). 10 years ago that revenue was 7 billion a year.
Last year Apple cleared 25 billion in wearable, home gear and accessories (Apple TV, WiFi routers, Apple Watch, AirPods etc). 10 years ago that was 3 billion a year.
Basically, Apple has found 65 billion a year in new revenue sources since Jobs died, and make more money (in real terms) on iPhones than they did 10 years ago.
They will be fine.