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One reason Apple has been able to keep device mostly cheaper over time (e.g., $1300 iPhone X versus $1100 iPhone 17 Pro [in 2025 U.S. dollars]) is services are higher margin than hardware margins. Apple is able to offset hardware costs with services margins. While there are other factors that allow Apple to keep hardware prices down, rising services revenue is one of those factors. In effect, we do have cheaper products because of ads.

I'd rather pay more and not have ads, but this is where things are.
Yeah, now that you mention it, even here in Europe iPhones price tag has risen less than inflation since the iPhone X.

My first thought when I read the piece of news, if I have to be honest, was that Apple needed the extra revenue for Google’s Gemini servers
 
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It's such off-brand thing for Apple to do. But anyway, as long as they are clearly marked, I'll just scroll past them like I do on Google and Amazon.
I paid nearly 3,000 dollars American between my M3 Pro MacBook Pro, an iPhone 15 Pro and AirPods 2 as a first time Apple product user 2 years ago so I WOULDN’T have to EFFING scroll past such garbage AND not pay RENT on software provided by Apple for free AND that WASN’T EFFING hobbled unless I paid Apple rent each year.
 
Great! More ads, as if we don't get saturated with advertisments (that we don't want to see) everywhere else, all day long. I am waiting for the technology to be developed to where our dreams, when we are asleep, will be infused with ads.
I had a professor 43 years ago in Advertising 101 class in college tell us that…

“Advertising is Capitalism’s propaganda department.”
 
Ummm (rubs chin) this has added another little step in the opposite direction away from the whole Apple ecosystem.

We'll see how I feel in another 6 months ((((((shakes head at more ads)))))))
 
One reason Apple has been able to keep device mostly cheaper over time (e.g., $1300 iPhone X versus $1100 iPhone 17 Pro [in 2025 U.S. dollars]) is services are higher margin than hardware margins. Apple is able to offset hardware costs with services margins.
Not likely. Apple wants to make as much profit as possible on the phone AND get you hooked on their services. They have zero interest in lowering their profit margin because you might also buy some services later. There is no guarantee of revenue there unless they purposely design a handicapped phone that only works with additional monthly payouts. This is not like Sony subsidizing a game console because you still have to buy the games. Tons of people never subscribe to ANY Apple services.

The reason the iPhone X was expensive by today's standards was because FaceID was very new and expensive tech and took a lot of R&D. It got cheaper to make over time and the upfront investment of the R&D has been paid off many fold over since then. Similarly, Apple signs supply contracts that are multi-year and control their supply chain very well, keeping component costs from rising with the cost of inflation. This is the ONLY thing Tim Cook has ever been good at, and it means phones get cheaper with time. They are also kings of marketing magic, and can do things like remove titanium from the phone and sell it as a benefit. This fall they will make the camera control less useful by removing the sapphire and I am sure they will not say it is to cut costs.

Last year they eliminated the 128 GB phones, but the 256 GB ones didn't slot into that same price point, so the phone went up $100 effectively. They aren't doing anything to minimize their profit margins in the shadow hope you will give them more money later through services.
 
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As long as the ads are limited to the App Store and not other apps, I’m fine with it.

The camels nose, my friend.

The camel has entered the Apple tent.

Screenshot 2026-01-23 at 11.48.59.png
 
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The Apple Tax is losing its value with this strategic shift. The notion that I'm the product represents a peeling of the veneer, and underneath is the same naked anti-consumer desire for profit. Apple once represented an island in a sea of barefaced greed, I suppose the tide is rising.

It was inevitable
 

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The camels nose, my friend.

The camel has entered the Apple tent.
Well the App Store has always had some amount of ads. I see some right now.

It’s sort of like seeing ads and promos at the grocery store vs on your refrigerator. The former is fine but the latter is not.
 
One reason Apple has been able to keep device mostly cheaper over time (e.g., $1300 iPhone X versus $1100 iPhone 17 Pro [in 2025 U.S. dollars]) is services are higher margin than hardware margins. In effect, Apple can partially offset hardware costs with services margins. While there are other factors that allow Apple to keep hardware prices down, rising services revenue is one of those factors. In effect, we do have cheaper products because of ads.

I'd rather pay more and not have ads, but this is where things are.
Don't worry, you are gonna be paying more and get ads as a bonus.
 
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