“Analyst Toni Sacconaghi of Bernstein Research put out a pointed note Monday about Apple’s growing services business,” Adam Lashinsky writes for Fortune.

“Two of his projections jumped out at me,” Lashinsky writes. “The first was in his headline: He estimates that through licensing deals to secure its search engine as the default option on Apple’s phones, will pay Apple $3 billion in fees in Apple’s fiscal year 2017. That’s all practically pure profit, Sacconaghi notes, and shows the power of Apple’s premium product reach.”

“The second data point he shares is the growing power of Apple’s services business,” Lashinsky writes. “The fact is that Apple’s services business, more profitable even than hardware, is becoming a growth engine for the company.”

Read more in the full article here.

MacDailyNews Note: Apple’s “Services” revenue for the last four quarters totaled $27.8 billion which, if it were a standalone company, would place it 98th on the Fortune 100 List of the largest U.S. corporations.

SEE ALSO:
Inside Apple’s massive services results – August 9, 2017
Misunderstanding Apple Services – August 7, 2017
Dispelling the Apple Services myth – May 3, 2017
Apple’s Services business: $7 billion in revenue last quarter alone – May 3, 2017
Apple’s Services (App Store, Apple Music, Apple Pay) business is an unstoppable juggernaut that’s still just gathering strength – May 3, 2017
MacDailyNews presents live notes from Apple’s Q217 conference call – May 2, 2017
Apple Q217 earnings beats on EPS, misses on revenue – May 2, 2017