Not to mention, a big chunk of Apple's "services" revenue is the wad of cash Google forks over to keep its search engine as the default on Apple's platforms.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple Reports 3Q 2024 Results: $21.4B Profit on $85.8B Revenue
- Thread starter MacRumors
- Start date
- Sort by reaction score
Besides the obvious spend areas, if i'm not mistaken, apple maps get service revenue from the ios team. So even if "no one" spent money, services would show revenue.
I mean if you consider putting a wrapper around Open AI isn’t being ahead of Apple. It clearly says they had to move folks around to support Infrastructure for processing Apple intelligence in house in addition to some going to Open AI. Any company can put a wrapper on existing services. I expect Apple to spend more, and may be have their own clusters than those Mac Studio ultra or Mac Pro ultra.
I wouldn’t call it big chunk, not unless you are confusing yearly with quarterly numbers. Significant but hardly a big chunk.
In 2022, Google was paying Apple around $5 billion per quarter. The number has increased steadily over the years (it was $4.5 billion per quarter the previous year). We don’t know what this year’s figure is, but at a minimum it likely hasn’t decreased. Apple’s services revenue for the just-ended quarter was around $24.2 billion. Conservatively, $5 billion would be a sizable chunk of that.
They're very different kinds of companies.
Walmart is a retailer. With the majority of its employees making relatively low wages.
Apple is a tech company that develops and manufactures products and software to go with them, by highly paid engineers with excellent benefits. Apple also spends a lot on IR&D. Walmart does not. Apple doesn't engage in mass layoffs.
With respect to differences, the above just scratches the surface
Sizeable isn’t a big chunk as you implied. It’s significant, for sure.
But what’s the idea here? Apple makes a lot of money because they sell a lot of products to customers. And the conclusion of that is that products are… worse? There’s this strange idea on the internet based on which Apple can get more revenue by selling worse products.
well, with all that said and done, Cook is an excellent CEO. We may like or dislike company products (i hate iPadOS), but as a business, Apple is very well oiled machine, no doubt.
For sure on that and Cook deserves a ton of credit for Apple's success.
That's why the biggest new feature in macos is... iPhone screen sharing
And, I suppose, AI. Thanks to... iOS
- EU population: approximately 449 million (2024)
- Total European population: about 751 million
- The EU represents roughly 60% of Europe's total population
- The EU represents the majority of Europe's economic power, likely around 60-70% of the total. It encompasses most of the largest European economies, with only a few significant non-EU economies like the UK and Switzerland remaining outside the union.
You may be right. But he doesn't really bring much charisma to the role. I'm wanting to see some personality.
And you forgot to add that we pay top dollar for Apple stuff. In other words, for what I paid for the last Mac desktop renovation and periphereals I could bought a much better equipment in the US.
That's a yearly amount. Apple is making a lot of money in service above and beyond Google.
A person cannot be something that he is not.
I mean, do you wish that he was an actor, and pretended to be Steve Jobs? How would someone lying to you help you feel better about a corporation?
I think the point people are making is that a large chunk of services revenue is not from what most people think of when services are mentioned i.e Apple Music, Apple TV, Apple Arcade etc.
That $5 bill a quarter is probably much higher than some of their actual software services bring in per year.
iPhone and wearables both down, no shock there when they've been neglected for years churning out fisher price *****.
No real AI, no design changes in 6 years, boring dull and ignorant.
No real AI, no design changes in 6 years, boring dull and ignorant.
I spent a while looking at that and trying to work out how, in 20204, Apple was making $20bn from iPod net sales.
I mean, what would you rather prefer?
All signs point to people holding on to their devices longer, and I don’t think this is necessarily a bad thing in itself. I used my 8+ for 4 years prior to upgrading to the 13 pro max, which I expect to keep for at least an equivalent period of time. My series 5 Apple Watch will be 5 years this September, and I am upgrading only because it won’t get the next OS upgrade. My M1 MBA is more than 3.5 years old and still going strong (even with “only” 8 gb ram and 256gb storage).
So it’s “common sense” that Apple pivots to higher prices, more accessories and services. Which again has its benefits. For instance, even if I upgrade my iphone only every 4-5 years, I still make Apple money by way of subscriptions, app purchases and Apple Pay. This gives Apple incentive to keep me a happy and satisfied iOS user (most notably through their long software support, something many android smartphone OEMs don’t do because there simply is no financial incentive for them to).
Apple hardware cost more upfront, but they also last longer, and therefore pay for themselves in the form of fewer problems and improved productivity overall.
I feel that Apple’s priorities and mine are kinda aligned in that regard. I continue to pay them, and they continue to give me a great user experience.
Switzerland is an important economic country because of several services like banking but with < 9 mio people it's a peanuts market for a company like Apple
Don't underestimate the effect of the lower iPad 10 price. With it's more modern look that price drop can entice people to switch
Purely in terms of volumes sold, iPad is (almost) always a bigger segment than the mac since you have price ranges starting from 350 $. There is also more app store revenue and other services linked to the sale of an iPad so adding everything up the iPad is a much more important product for apple than the Mac is. At least if we're looking at current and past years P&L.
This is why I always laugh at all those "iPad is dying" youtuber nonsense videos.