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They make almost all their profits from hardware, and use good software as a strategy to sell more hardware.

Apple's gross margin percentage for its services segment (App Store, Apple Music, AppleCare, Apple Pay, iCloud storage services, AppleCare warranties, Apple Music, Apple Arcade, Apple TV+, and the Apple Card) is almost twice that of the products segment.

In 2021, the gross margin percentage for the services segment was nearly 70% as compared to the 35% gross margin percentage from the products segment.

https://www.globaldata.com/data-insights/technology-media-an...

Yes but it's a small fraction of the profit they make from their hardware sales.

I buy Apple not because they make hardware or software but because they make integrated systems of both.

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