“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.
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