The Unsung Hero of Apple's Success: Software's Role in Hardware Sales

An Insightful Look into How Apple's Software Strategy Enhances Hardware Margins

At Apple, the software business exists to sell hardware, (not the other way around).

The R&D budgets put into the applications team and services business, even after having grown to a $85bi+ business, still exists to sell the hardware (because hardware sales are where the real profit margins are).

Apple's services segment has grown significantly but still serves to drive hardware purchases rather than becoming a standalone business, as the company prioritizes higher-margin iPhone and device sales over software offerings. At Apple, software and services exist to sell hardware as the focus is on using services to boost much larger profit margins on hardware sales.

Learn more about why Apple's $85 Billion Services Business Is Less Profitable Than You Think:

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