“In a recent column, I wrote about a new great divide in Silicon Valley, in which one side believes the best business model is to sell products and services while the other side gives away services subsidized by advertising,” Tim Bajarin writes for PC Magazine.
“It’s becoming clear that those selling products and services — such as Apple, Amazon, and Microsoft — have perhaps the most sustainable models,” Bajarin writes. “Apple announced in its May 1 earnings call that its services revenue during the last quarter was $9.2 billion. This is a 31 percent increase from the same quarter a year ago; if made a standalone company on its own, services would be a Fortune 300 company.”
Bajarin writes, “While there is money to be made in hardware, PC sales continue to shrink and a focus on services is critical to the long-term survival of companies like Apple, Microsoft, and others.”
Read more in the full article here.
MacDailyNews Take: As we wrote last August:
Apple’s services business is an unstoppable locomotive that, someday, even Mr. Market might fairly value.
Apple as a service: Services offer growth, visibility, and profitability – May 15, 2018
AAPL’s paradigm shift – May 11, 2018
Apple Services: The nitrous in Cupertino’s profit engine – November 27, 2017
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