Despite Growing Services, Apple Remains a Hardware Company

1 minute read
| News

Even though Apple has been increasing its Services business, like apps, content, and advertising, Apple is still a hardware company (via The Wall Street Journal).

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Services & Hardware

Apple services are tied to its hardware, and that’s an important part of Apple’s strategy. Even though Apple Music is on Android, none of its other offerings are. If you want to read Apple News, buy Apple apps, watch Apple videos, you have to buy an Apple device.

images of apple music, apple news, and apple books

Examples of Apple services: Music, News, and Books

That’s not to say that services prop up the hardware business. Rather, services are the add-ons to the Apple package, and they are just as important as the hardware. For example, many Apple customers don’t buy Apple devices to get the latest and greatest specs. If specs are all you care about, there are plenty of good Android phones.

Instead, Apple customers buy Apple devices because they run iOS, watchOS, tvOS, and macOS, along with their content (oh and iMessage). So when Apple chose not to release unit sales numbers anymore, the only people that really matters to are investors on Wall Street. The market may or may not be in “peak smartphone” but Apple continues to make healthy profits.

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