Face it. Apple is a hardware company. Sure, there are Services, but there have always been services and since Apple has more than a billion customers there is plenty of money to be had by selling them ever more hardware and services. Guess what?
Wear It Proud
My latest purchase was an impulse buy at the Apple Store. It was the rainbow Watch band. No, I’m not a member of LGBTQ, but we are planning a Hawaii vacation after hurricane season and, well, the aloha state has rainbows everywhere. What I’m getting to here is that Apple is a hardware company. Yes, collectively, Services is big business, but where would it be without hardware? Oh, and a billion customers.
It’s that billion customers which allows Apple the privilege to create ever more hardware and services to sell to us. The latest financials tell the tale. Despite declining smartphone sales, Apple still gets the lion’s share of revenue and profits, even if the total isn’t even 50-percent of Apple revenue. I just looked at the company’s recent Statement of Operations and one thing stood out big.
Five big, fat legs on the chair. iPhone at almost $25-billion, Services at about double the Mac at $11.5-billion, the Mac at $5.8-billion, and… insert the famous Mac360 drum roll here… revenue higher than iPad– Wearables.
OK, Wearables is not just Apple Watch, though it’s likely that is the big player in the group. It also includes Home and Accessories. Apple makes plenty of money selling 25-cents worth of silicon iPhone cases for $40, but the company brought in more revenue for the rapidly growing Wearables group than iPad. Oh, and both Mac and iPad sales were up, too.
What does that tell you?
Apple is a Services company? Nope. It’s still hardware. Apple is a Wearables company? Nope. Apple is a hardware company and thanks to Watch, AirPods, Beats headphones, and a Haleakala crater full of accessories, the iPhone maker has figured out how to make some big, fat legs on a very profitable chair.