this post was submitted on 12 Jun 2024
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It's not just that hardware price that benefits Apple. Their services revenue was 30% of total revenue last year and it's growing. Between the App Store cut, AppleTV+, iCloud, and all the others, they are running headlong into a world where selling an iPhone is a smaller piece of the pie than selling apps and cloud storage is.
Damn… 30% is actually way more than I thought. Profit margins are probably lower, right?
They have to be, but even still it’s digital goods. So, price of production is peanuts once development is covered — just infrastructure.
Not with apple tv+, I believe only netflix makes profit of streaming.