“Apple now makes more revenue from its services than it does from selling Macs,” Tom Warren reports for The Verge. “Revenue from services like iTunes, the App Store, other internet services, and licensing has increased 20 percent year-over year. It’s a shift that means Apple can now generate a steady stream of revenue from existing devices that are accessing its internet-based services that the company controls.”
“The overall shift means Apple’s services unit is now the company’s second largest category during the recent quarter,” Warren reports, “ahead of Mac and iPad sales but behind dominant iPhone sales.”
“While services are now ahead of Mac revenue, that doesn’t mean the Mac is failing,” Warren reports. “Mac sales dropped 12 percent year-over-year, but Maestri believes the company ‘grew market share” despite a “challenging quarter for personal computer sales across the industry.’ Mac sales generally outperform the rest of the PC market, but sales have declined in both of Apple’s 2016 quarters.”
Read more in the full article here.
MacDailyNews Take: Again, here’s hoping Apple has big plans for Mac (software and hardware) at WWDC this June.
SEE ALSO:
Why Apple needs more hardware hits – And, has Tim Cook lost his focus? – April 29, 2016
The iPhone 6s has been a major disappointment for Apple – April 27, 2016
Analyst: Apple to dump ‘iPhone 7s’ and jump straight to iPhone 8 next year – April 22, 2016
Apple services now reach 124 million U.S. adults as user base expands – April 21, 2016
Analyst cuts Apple price target, says ‘iPhone 7’ doesn’t look like a must-have upgrade – April 20, 2016
Apple’s services business saw massive 60% profit margins in 2015, more growth expected – April 20, 2016
Why the 2017 iPhone will be made of Liquidmetal – April 18, 2016
Ming-Chi Kuo: Apple’s 2017 iPhone to feature new ‘all glass’ enclosure – April 18, 2016
75 percent of teens say their next phone will be an iPhone – April 13, 2016
Credit Suisse: Apple’s underappreciated services business could be growth engine – April 4, 2016
Mossberg: Apple’s iPhone 7 had better be spectacular – March 23, 2016
Apple highlights services in search of Wall Street’s love – January 26, 2016
Apple reaps $18.4 billion quarterly profit, the largest ever recorded by a single public corporation – January 26, 2016
Apple beats on earnings; sets all-time records for revenue, net income, and EPS – January 26, 2016
MacDailyNews presents live notes from Apple’s Q116 Conference Call – January 26, 2016
Apple beats Street with all-time record quarterly earnings – January 26, 2016
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]