Apple has a surprising new growth engine

“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

8 Comments

  1. Google may be paying for default search status, but I can (and did) change my default to DDG. I encourage all iPhone users to do the same. Every search on Google delivers more information about you. As if that is not enough, Google tracking is all over the internet. You search for a car part and suddenly MDN is advertising that car part. It is funny, in a way, because they are advertising something that I likely already purchased and may not need again for a long time, if every. Talk about futile…

  2. Another happy user of DDG here too. For those who do not live in the USA, it’s also worth pointing out that you can get much better results with DDG if you go into it’s settings and select your own country ( and language if appropriate ). You’ll get results which priories local matches rather than global matches.

    When I started using DDG, I found that I needed to use Google regularly because DDG didn’t always deliver the results I needed, but DDG has improved enormously over the last few years and I can’t remember the last time I needed to use Google or Bing.

    I rather like the fact that Google is paying Apple all that money and so many of us never use what Google are paying Apple for.

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