“The narrative surrounding Apple Services has taken on a life of its own. While many people think Apple is moving to embrace a more services-oriented culture in response to slowing iPhone sales, the reality is much different,” Neil Cybart writes for Above Avalon. “It’s time to dispel the myth that Apple is becoming a services company.”

“Apple Services was thrown into the spotlight this past January when it became apparent that Apple would soon report its first year-over-year decline in iPhone sales. In an effort to get Wall Street to focus on something other than slowing hardware sales growth, management began to weave a new Apple narrative involving terms such as “installed base related revenue” and “installed base related purchases.” Apple’s goal was to provide Wall Street with a different way to think about Apple’s business,” Cybart writes. “However, many company observers misinterpreted the change in narrative as Apple looking to pivot into a services company.”

“The Apple Services myth was born. We have gotten to the point where seemingly every report chronicling iPhone sales declines quickly turns to Apple’s supposed push into services,” Cybart writes. “Apple isn’t turning into a services company. The narrative that Apple management tried to sow earlier this year with Wall Street wasn’t meant to foretell a shift to new recurring revenue streams. Instead, Apple wanted to give investors a different way to think about Apple hardware sales. Apple can still grow the installed base despite year-over-year hardware sales declines.”

Much more in the full article – recommendedhere.

MacDailyNews Take: Services revenue is just a side benefit for Apple executing properly. That Apple’ services business alone will be ‘Fortune 100’ size next year is meaningful for providing perspective on the immense size of Apple’s overall business.

If you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next. — Steve Jobs

Note: Apple’s services business includes revenue from Internet Services, AppleCare, Apple Pay, licensing and other services. The Milwaukee-based life insurer Northwestern Mutual is currently 100 on Fortune’s list with $28.111 billion in annual revenue and 5,530 employees.

SEE ALSO:
Tim Cook’s Babe Ruth moment: Calling services biz ‘Fortune 100’ over a year in advance – July 27, 2016
Tim Cook: Apple’s services business alone will be the size of a Fortune 100 company by next year – July 26, 2016