Apple has been making sure to let shareholders know that they are a services business but Apple has been in the services business for a while and counts things as services that are not what we as consumers would be considered services.
Let me explain Apple’s services business is at $13.35 billion, up from $11.45 billion a year earlier but that comes across great to shareholders but that number is a little misleading. To start with all the money Apple makes on the App Store including app sales and subscriptions are included in the number of that service. Apple includes the contract with Google to be the default search engine in that service business number as well.
The point I am getting at is we thinking of services as Apple Care, Apple Pay, iCloud, Apple Music, Apple News+. Apple TV+, Apple Card, and Apple Arcade. But the truth is while these services do make a lot of profit for Apple but they are small when you compare it to the money generated by the App Store.
This is one of the main reasons why Apple is protecting the App Store and why they are going through a battle with Epic. Apple does not want to lose control of the App Store as it’s a primary revenue generator for them in their new services business they have promised to shareholders.
Apple is even using Maps as a revenue generator to add to its services business. Apple map business is small when compared to Google Map but Apple is limiting 250,000 map views and 25,000 service calls on companies that integrate its maps on the web for free if you need more than that you will need to pay Apple.
I am not in any way bashing Apple for this business practices I myself enjoy the security and safety of Apple’s platform. What I am saying is that when you look deeper into Apple services business its a lot more than just a few services many users think of like Apple Music, Apple Arcade, Apple TV, and Apple New.