Higher profit margin too, which is important. If the trend of supply-chain uncertainty in America continues, Apple might have to expect users to buy fewer, more expensive, and lower-margin Apple products. This isn't an issue if these purchases can lure them into a monthly service subscription though. Someone that owns a single iPad might spend more on software services than the hardware itself over the lifespan of the device. That's a huge opportunity to exploit, while retaining the luxury brand halo people love so much.

The whole "services company" characterization gets thrown around as a way to emphasize how many products Apple still has. But this is how it starts; less investment in disruption and more money funneled into new AppleTV+ episodes or publishing on Apple Arcade. Apple Car, Airpower and arguably Vision Pro are all buried in shallow graves, with AI becoming the heir apparent to Apple's technical sheen. The message is clear: selling you software is Apple's goal.

People hear services and think of Apple Music, Apple TV, etc., but the reality is $20B/yr of that “services” revenue is just Google paying Apple to be the default search engine.