Two things come to mind, Apple Music, and ridiculously uncompetitive iCloud storage requiring people to subscribe to store just about anything other than an iCloud backup.
"Apple’s Services segment, which includes digital content from iTunes, app revenue, AppleCare, Apple Pay, and other services"
iCloud storage is the stuff people see because it’s a pain point (their pricing is lame), but App Revenue and Apple Pay are likely bringing in a lot of that bacon, too.
Samus - App revenue is the big one in services, Apple Pay will bring in virtually nothing now and probably nothing in the future as Visa and Mastercard prevent it
Samus, I agree that iCloud is a mandatory upgrade but I believe, could be wrong (happens lots lol;)) but they dropped their pricing on the higher tier plans to bring in line with the other 'players'; Dropbox, Google Drive, One Drive, Amazon and other offering a TB/@$9.99 a month. Again, I believe that's the case and IMHO - even though each has a few 'pros' to using their services, if a user is strictly iOS/MacOS... iCloud is as competitive and compelling an offer as any of the others, if not, a significantly better option. With it's continuity, integration and aggregation between the OSs, both vertically and horizontally - file maintenance, backup and access hasn't been as intuitive and as friendly to the end user in computing history!
I'm not embellishing or exaggerating the value of using macOS and iOS, watchOS/tvOS and the foundational ecosystem anchored by the largest, most diverse and useful library of software... again - In History... the App Store!
Ten years ago, average folks, not us geeks... used a desktop computer tethered by 110v and a phone, eventual coax line to check email, 'Instant Message' (IM;)), browse, game, print, manipulate PDFs, photos and videos, navigate and plan, purchase and shop... literally everything today's smartphone is capable of handling And each year, less computers are sold while more smartphones continue to grow sales. I'm 45 and I'm familiar with Windows and OS X/macOS, iOS and Android. I'm a fan of all but my home and business run on macOS and iOS. The cross platform handoff and immediate updates for collaborative project continuity. With employees in the field using iPads, home base operating on iMacs and Mac Pros, others using MacBook pros on a business trip to sell the new client and a genuine peace of mind... as iCloud and the operation systems' ability and reliability is hands off - no network engineering experience needed operation success. Every time, and as rock solid a backup as any of the other competing services today
iCloud is working well in browser using Windows 10 or Chromebooks as well - but the challenge facing competitors is the simple fact they lack the horizontal and vertical infrastructure Apple's created between mobile, office, home and 'on the go' - take a picture and when you get home it's available to edit on your Mac or MacBook or iPad or iPhone. Starting a resume on the iPad, finish as time permits on the MacBook or finish the email on the iPad you started, got interrupted... took a call, and an hour later when hanging up with your long lost pal... you move your Magic Mouse to wake up Mac and check out pictures your friend posted ... and being reminded that the email draft began an hour ago awaits your attention, isn't 'in your face' - but a reminder to finish, simple example - but HUGE and amazing advances in the reliability, dependability and ubiquity of Apple's services, IMHO, has certainly been a bright spot for the company and it's continued evolution and it's possibilities seem fascinating!
If I'm wrong about the price of the tiers ($1.99/100 or 200GB, I believe and the TB @ $9.99) - I'll buy you a beer Samus! If right, and I also subscribe to the family MS Office 365 @ $9.99/month -- 5TB of storage with the world's most owned used and supported word processor, spreadsheet creator and presentation builder thrown in to boot! (5 accounts, with a TB each of online storage and the ability to install on five computers and five tablets, Windows or macOS, iOS or Android!) -- the two combined are a huge bargain for a family like mine, kids and their memories preserved and saved, backups of projects, school work, games and complete 'phones' or 'tablets' - allowing the purchase of a new device and foolproof, one button restoration of data to the new device. Without plugging in to your desk or laptop once!
iCloud and the excellent options that exist all have plenty of upside, little downside but saying Apple's 'ridiculously uncompetitive iCloud storage requiring people to subscribe to store just about anything other than an iCloud backup' is not true. Amazon requires Prime @ $99/yr. Google is a ten dollar bill for a TB a month, as well as Dropbox and Microsoft Office Family. Maybe I'm missing something but I pay either two or three bucks a month for 200GB of iCloud storage and I have a wife with two kids. We all have an iPad and iPhone and the kids share an iMac. Mom and I use MacBooks - our business is separate. My point is the 200GB is more than enough for our entire family's pics, vids, contacts, calendars and data! Many thousands of pictures and videos need to be gone through but I still have 80GB open, music and video don't count against the cap is using iTunes music or Match. (.Video, as in movies from iTunes). Nor do apps - including unavailable ones.
My two cents, as I'm constantly excited about new ways iCloud has helped me, my family and my business 'housekeeping' and organization. I spent a lot of time early in the days of iOS complaining with the "no file system" crowd and after 30 years of disorganized file system computing practices, iCloud has solved my dilemma and keeps my sleep sound... knowing my records are backed up if IRS comes knocking, kids' memories and important files are safely stored in the case of the worst at home, and with today's connectivity... my files are available anywhere, anytime, on any device!
I think you're operating on out-of-date (or downright faulty) information. Apple data plans are more affordable than Dropbox. They have two low cost pricing categories that dropbox refuses to offer - 50 GB for $.99 / month and 200 GB for $2.99/month. This is a small price to pay for cloud storage that is near-perfectly integrated with your MacBook.
Loss of the headphone jack obviously a complete and utter non-event then. If anything, it was a good thing, as it enabled a device so compelling record amounts were paid for it!
Android is dying and Google's Pixel is an iPhone wanna-be. Go look at their website and you'll recognize that it's a carbon copy of Apple.com. Too bad they didn't make enough devices to meet the demand. Because Apple was prepared to pick up the customers they lost.
I've concluded the reason they do that is that it's fewer (less?) letters. When speaking it's fewer syllables. Multiplied over how many times you use it (and read it or hear it) over a lifetime, it really adds up. :-) As for print (ads, articles, etc.), it saves space, which can reduce the number of lines of print, and in the case of an ad, can allow for increased impact because each letter can be bigger for a given amount of space. I think it's the same reason the -ly suffix is usually omitted. (All this besides arguments related to grammatical correctness.)
This record quarter has one extra week compared to the past one: 24-31 December. I've read on other sites that revenue would be slightly down, -3% actually, if we were to make a comparison for literally the same time frame.
Actually, from an accounting standpoint, the past quarter had that $548 Million Samsung judgement included in the numbers which obviously didn't happen again in this quarter.
Beats may have been the dumbest acquisition in the history of tech acquisitions, but it looks like they have enough product/service diversity to mask their incompetence. Good for Apple, but it will be interesting to see what happens in the next year.
Not to mention that the Beats story is far from over. Beats is a way for Apple to sell the same tech in a packaging that might seem gauche to their high end users. For example imagine AirPods that have LEDs up the stalk that pulse in time to the music. Not a good match for the Apple brand, perfect for the Beats brand...
I could also see Apple experimenting with selling things like HomeKit devices under the Beats brand, at least experimentally, as a way to probe the market before the more sophisticated Apple brand versions of the most successful devices are launched.
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23 Comments
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osxandwindows - Tuesday, January 31, 2017 - link
Their services revenue is growing like crazy.Samus - Wednesday, February 1, 2017 - link
Two things come to mind, Apple Music, and ridiculously uncompetitive iCloud storage requiring people to subscribe to store just about anything other than an iCloud backup.xype - Wednesday, February 1, 2017 - link
"Apple’s Services segment, which includes digital content from iTunes, app revenue, AppleCare, Apple Pay, and other services"iCloud storage is the stuff people see because it’s a pain point (their pricing is lame), but App Revenue and Apple Pay are likely bringing in a lot of that bacon, too.
Speedfriend - Wednesday, February 1, 2017 - link
Samus - App revenue is the big one in services, Apple Pay will bring in virtually nothing now and probably nothing in the future as Visa and Mastercard prevent itMeteor2 - Wednesday, February 1, 2017 - link
What do you mean, as Visa and MasterCard prevent it? It's just a vehicle for delivering Visa and MasterCard date to enable an transaction, isn't it?akdj - Wednesday, February 1, 2017 - link
Samus,I agree that iCloud is a mandatory upgrade but I believe, could be wrong (happens lots lol;)) but they dropped their pricing on the higher tier plans to bring in line with the other 'players'; Dropbox, Google Drive, One Drive, Amazon and other offering a TB/@$9.99 a month. Again, I believe that's the case and IMHO - even though each has a few 'pros' to using their services, if a user is strictly iOS/MacOS... iCloud is as competitive and compelling an offer as any of the others, if not, a significantly better option. With it's continuity, integration and aggregation between the OSs, both vertically and horizontally - file maintenance, backup and access hasn't been as intuitive and as friendly to the end user in computing history!
I'm not embellishing or exaggerating the value of using macOS and iOS, watchOS/tvOS and the foundational ecosystem anchored by the largest, most diverse and useful library of software... again - In History... the App Store!
Ten years ago, average folks, not us geeks... used a desktop computer tethered by 110v and a phone, eventual coax line to check email, 'Instant Message' (IM;)), browse, game, print, manipulate PDFs, photos and videos, navigate and plan, purchase and shop... literally everything today's smartphone is capable of handling
And each year, less computers are sold while more smartphones continue to grow sales. I'm 45 and I'm familiar with Windows and OS X/macOS, iOS and Android. I'm a fan of all but my home and business run on macOS and iOS. The cross platform handoff and immediate updates for collaborative project continuity. With employees in the field using iPads, home base operating on iMacs and Mac Pros, others using MacBook pros on a business trip to sell the new client and a genuine peace of mind... as iCloud and the operation systems' ability and reliability is hands off - no network engineering experience needed operation success. Every time, and as rock solid a backup as any of the other competing services today
iCloud is working well in browser using Windows 10 or Chromebooks as well - but the challenge facing competitors is the simple fact they lack the horizontal and vertical infrastructure Apple's created between mobile, office, home and 'on the go' - take a picture and when you get home it's available to edit on your Mac or MacBook or iPad or iPhone. Starting a resume on the iPad, finish as time permits on the MacBook or finish the email on the iPad you started, got interrupted... took a call, and an hour later when hanging up with your long lost pal... you move your Magic Mouse to wake up Mac and check out pictures your friend posted ... and being reminded that the email draft began an hour ago awaits your attention, isn't 'in your face' - but a reminder to finish, simple example - but HUGE and amazing advances in the reliability, dependability and ubiquity of Apple's services, IMHO, has certainly been a bright spot for the company and it's continued evolution and it's possibilities seem fascinating!
If I'm wrong about the price of the tiers ($1.99/100 or 200GB, I believe and the TB @ $9.99) - I'll buy you a beer Samus!
If right, and I also subscribe to the family MS Office 365 @ $9.99/month -- 5TB of storage with the world's most owned used and supported word processor, spreadsheet creator and presentation builder thrown in to boot! (5 accounts, with a TB each of online storage and the ability to install on five computers and five tablets, Windows or macOS, iOS or Android!) -- the two combined are a huge bargain for a family like mine, kids and their memories preserved and saved, backups of projects, school work, games and complete 'phones' or 'tablets' - allowing the purchase of a new device and foolproof, one button restoration of data to the new device. Without plugging in to your desk or laptop once!
iCloud and the excellent options that exist all have plenty of upside, little downside but saying Apple's 'ridiculously uncompetitive iCloud storage requiring people to subscribe to store just about anything other than an iCloud backup' is not true. Amazon requires Prime @ $99/yr. Google is a ten dollar bill for a TB a month, as well as Dropbox and Microsoft Office Family.
Maybe I'm missing something but I pay either two or three bucks a month for 200GB of iCloud storage and I have a wife with two kids. We all have an iPad and iPhone and the kids share an iMac. Mom and I use MacBooks - our business is separate.
My point is the 200GB is more than enough for our entire family's pics, vids, contacts, calendars and data! Many thousands of pictures and videos need to be gone through but I still have 80GB open, music and video don't count against the cap is using iTunes music or Match. (.Video, as in movies from iTunes). Nor do apps - including unavailable ones.
My two cents, as I'm constantly excited about new ways iCloud has helped me, my family and my business 'housekeeping' and organization. I spent a lot of time early in the days of iOS complaining with the "no file system" crowd and after 30 years of disorganized file system computing practices, iCloud has solved my dilemma and keeps my sleep sound... knowing my records are backed up if IRS comes knocking, kids' memories and important files are safely stored in the case of the worst at home, and with today's connectivity... my files are available anywhere, anytime, on any device!
Another view
fanofanand - Wednesday, February 1, 2017 - link
You forgot to add "This comment was bought and paid for by Apple Corp."TEAMSWITCHER - Wednesday, February 1, 2017 - link
I think you're operating on out-of-date (or downright faulty) information. Apple data plans are more affordable than Dropbox. They have two low cost pricing categories that dropbox refuses to offer - 50 GB for $.99 / month and 200 GB for $2.99/month. This is a small price to pay for cloud storage that is near-perfectly integrated with your MacBook.Meteor2 - Wednesday, February 1, 2017 - link
Loss of the headphone jack obviously a complete and utter non-event then. If anything, it was a good thing, as it enabled a device so compelling record amounts were paid for it!baka_toroi - Wednesday, February 1, 2017 - link
I wanna punch consumers in the face.TEAMSWITCHER - Wednesday, February 1, 2017 - link
Android is dying and Google's Pixel is an iPhone wanna-be. Go look at their website and you'll recognize that it's a carbon copy of Apple.com. Too bad they didn't make enough devices to meet the demand. Because Apple was prepared to pick up the customers they lost.sorten - Wednesday, February 1, 2017 - link
What, is Android down to only 80% of the market?Alexey291 - Wednesday, February 1, 2017 - link
The message above was brought to you to your friendly Apple marketing department.prophet001 - Wednesday, February 1, 2017 - link
lolYa'll are nuts.
Like "take me apple! take me! do whatever you want! i'm yours!" then looking around the room and asking "wut?"
GlennHowes - Wednesday, February 1, 2017 - link
I really wish people wouldn't write "less" when they should use "fewer".Ktracho - Wednesday, February 1, 2017 - link
I've concluded the reason they do that is that it's fewer (less?) letters. When speaking it's fewer syllables. Multiplied over how many times you use it (and read it or hear it) over a lifetime, it really adds up. :-) As for print (ads, articles, etc.), it saves space, which can reduce the number of lines of print, and in the case of an ad, can allow for increased impact because each letter can be bigger for a given amount of space. I think it's the same reason the -ly suffix is usually omitted. (All this besides arguments related to grammatical correctness.)id4andrei - Wednesday, February 1, 2017 - link
This record quarter has one extra week compared to the past one: 24-31 December. I've read on other sites that revenue would be slightly down, -3% actually, if we were to make a comparison for literally the same time frame.fanofanand - Wednesday, February 1, 2017 - link
Interesting! I would have appreciated that context being placed in the article!BillBear - Thursday, February 2, 2017 - link
Actually, from an accounting standpoint, the past quarter had that $548 Million Samsung judgement included in the numbers which obviously didn't happen again in this quarter.fanofanand - Wednesday, February 1, 2017 - link
Beats may have been the dumbest acquisition in the history of tech acquisitions, but it looks like they have enough product/service diversity to mask their incompetence. Good for Apple, but it will be interesting to see what happens in the next year.solipsism - Wednesday, February 1, 2017 - link
If profiting handsomely off an an acquisition is dumb then what do you consider a smart acquisition? WebOS?name99 - Friday, February 3, 2017 - link
Not to mention that the Beats story is far from over. Beats is a way for Apple to sell the same tech in a packaging that might seem gauche to their high end users.For example imagine AirPods that have LEDs up the stalk that pulse in time to the music. Not a good match for the Apple brand, perfect for the Beats brand...
I could also see Apple experimenting with selling things like HomeKit devices under the Beats brand, at least experimentally, as a way to probe the market before the more sophisticated Apple brand versions of the most successful devices are launched.
tmr.sofyan - Wednesday, March 11, 2020 - link
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