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Exactly. And not only are services 20% of revenue—they have a gross profit margin of about 70%. That allows Apple to maintain their ~38% overall gm, even with hardware down around 31%.

Put another way, services are subsidizing hardware prices.
It’s obvious why Cook is pushing so hard on services. Not a lot of work involved taking 30% or 15% from an Apple TV app “channel” subscription. Same with the cut they get off of every App Store IAP. With high margins like that and Wall Street being obsessed with “services“ and recurring revenue it’s a no-brainer. As as a long time fan of the company it’s a little depressing. Sure we still get flashes of great products like Apple Watch and Air Pods but the focus now seems to be on just being a money machine and pleasing Wall Street.

Jason Snell wrote about this on his six colors website (I can’t find the article right now). It was all about how it‘s hard to get excited about Apple‘s new business model of extracting more $$ from its install base. Take Apple TV+. What reason does it have for existing other than to help grow Apple’s services revenues to offset declining hardware sales? It’s not like there’s a dearth of streaming content. It’s not like Apple TV+ content is heads and shoulders above HBO, Netflix, Amazon etc. in terms of quality. The Morning Show could have gone anywhere. It wouldn’t be out of place on any other streaming service. Apple TV+ nothing more than Apple has piles of cash to throw at content creators. But is that really changing the world like iPhone did and Apple Watch could? I can see why Ive decided it was a good time to retire from the company. The stock is having a good run up now because investors know 5G iPhones are coming. But then what?
 
Er. What's your source for that?



No, I said services are 20% of their revenue. That's something completely different.
You want sources ? Just google. You’ll find many many. Here’s one to get you started:

Here’s another:


The fact that you now wish to argue semantics on whether due to fast typing I wrote apple services are making a 20 percent return over 20 percent of their revenue is somewhat pedantic. On that note I see there is no need for further engagement with someone relying on pedantic discourse in order to attempt support of a weak argument. Good day.
 
I don't, and neither do you, because Apple doesn't actually drill it down any further in public.



OK, but so what?

There seems to be a weird mismatch here between "this is as revolutionary as the iPhone" (I don't think that's right), "they will never break even" (I wouldn't be surprised if they already have) and "this serves only as a conduct to sell more hardware" (it doesn't have to be either-or, but if it were purely that, they probably wouldn't let you run Apple TV+ on third-party TV sets and Roku).

It's a revenue stream. It doesn't have to be the biggest, or the most profitable; it can exist in its own right and be… just fine.
Apple doesn’t have to say for me to have a pretty good idea. And it‘s something Ben Thompson and John Gruber have discussed on Gruber’s podcast before. Oh and one thing I forgot...iCloud and Apple Care. Heck just the other day I got a message saying my phone couldn’t be backed up because I didn’t have enough iCloud storage. I’m not giving Apple any more money for iCloud so I spent a couple hours going through apps, photos and iMessage freeing up space. But how many people get that message and buy more storage because they don’t have time (or know how) to free up space? Sure these are all revenue streams but it’s hard to get excited about Apple posting record services revenues when most likely those revenues are from Apple‘s cut of IAP, iCloud and Apple Care.
 
You want sources ? Just google. You’ll find many many. Here’s one to get you started:

Here’s another:


Neither of those is a source for your contention that Apple Music does not "make a profitable return". You're implying that Apple Music is a loss leader.

There's no pedantry to that. You're simply making a completely different argument.

The fact that you now wish to argue semantics on whether due to fast typing I wrote apple services are making a 20 percent return over 20 percent of their revenue is somewhat pedantic. On that note I see there is no need for further engagement with someone relying on pedantic discourse in order to attempt support of a weak argument. Good day.

If you think profit vs. revenues is "semantics", I really don't know what to tell you.

"Apple doesn't make a lot of money on Apple Music" vs. "Apple loses money on Apple Music" are quite different.
 
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Going in I expected a 'woke' PC drama designed to please the Twiterrati. Was completely hooked and watched the whole thing over the weekend with my wife. The writing is thought-provoking and at times punches you in the guts. There are so many shades of gray and it looks at the me-too movement from all sides which I was not expecting from something coming from Tim Cook's Apple. There's a moment between Steve Carrell and Martin Short that made the whole show worth watching for me. Jennifer Aniston was unexpectedly great and Billy Cudrup lit the screen up every time he was on.
This is almost word for word how I felt about TMS. I came in very wary and was blown away. The Martin Short character was an amazing foil to put Carrell into perspective, and eventually to show us Carrell's delusion. Loved Aniston and Crudup too!
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Finished TMS this weekend, wow, we were hooked from episode 2.

Well deserved, hoping there is a season 2.
They are already working on Season 2! I expect this show to continue for many many seasons, along with Servant.
 
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(emphasis added)
"An" only works if one is to pronounce the letters in the acronym, "An S-A-G Award." However, for as long as I can remember (and I started recording/broadcasting actors, announcers, and singers in the '70s), the Screen Actors Guild acronym has been pronounced as a word, as in 'Sag Harbor, New York' (popular locale for a fair number of successful SAG members) or 'sagging mattress.' The American Federation of Television and Radio Artists' acronym, AFTRA, is also pronounced as a word. Prior to SAG and AFTRA's merger in 2012 (now SAG-AFTRA), most working on-screen and voice talent paid dues to both organizations. Trust me, when they speak of their union they spit out three or four syllables... sag-an'-af-tra or sag-af-tra, not eight or nine (S-A-G and A-F-T-R-A).

I just checked the SAG-AFTRA media website for a "pronouncer," but I guess they assume anyone speaking their name on camera/on mic is a dues-paying member (or wannabe), so no need to spell things out.

Now, if we were referring to the American Federation of Musicians (AFM)... yeah, it's A-F of M. Actors Equity is, "Equity," the Director's Guild of America is D-J-A... (Are you noticing that performers who use their voices favor things that trip lightly off the tongue?)

Holy cow. You didn't have to say all that. Just say it's pronounced as "sag" as in "saggy breasts."
 
Anyone remember when she was just starting out on Friends?
She's a very good actress. For me, where do I remember her from? She's the one from Leprechaun, and Office Space. I could never stomach Friends, but her and Kudrow are quite talented.
 
This show shook me.

The final 14 minutes of episode 8—“Lonely at the Top”—were so chilling, frightening, creepy. The final 12 minutes of the season finale—“The Interview”—changed everything I was expecting… I was crying, it was so awe-striking, empowering and IMPORTANT.

Jennifer’s performance was outstanding, as were so many other actors in the show. It’s a valuable show, I’m glad I watched it.

I agree. Finished watching the last episode yesterday - the ending was riveting. Can't wait for Season 2 (and beyond)!
 
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Heck just the other day I got a message saying my phone couldn’t be backed up because I didn’t have enough iCloud storage. I’m not giving Apple any more money for iCloud so I spent a couple hours going through apps, photos and iMessage freeing up space. But how many people get that message and buy more storage because they don’t have time (or know how) to free up space?

Not sure what your point is here, that your time is worth so little to you that it was better spent pruning your iPhone’s storage than paying a small amount to increase your iCloud space or that you think you should just get all the storage for free?

Sure these are all revenue streams but it’s hard to get excited about Apple posting record services revenues when most likely those revenues are from Apple‘s cut of IAP, iCloud and Apple Care.

Again, not sure what your point is? It is bad that Apple has profitable services products that people want but that are not “exciting” or that this money does not count? People choose to buy these services and rate them highly. That seems like a good thing to me. I am much happier about them making money from customers directly rather than by selling customer data to others.
 
Not sure what your point is here, that your time is worth so little to you that it was better spent pruning your iPhone’s storage than paying a small amount to increase your iCloud space or that you think you should just get all the storage for free?



Again, not sure what your point is? It is bad that Apple has profitable services products that people want but that are not “exciting” or that this money does not count? People choose to buy these services and rate them highly. That seems like a good thing to me. I am much happier about them making money from customers directly rather than by selling customer data to others.
People rate iCloud storage highly? Got a link for that? And who’s making money selling customer data to others besides maybe Facebook?
 
Not sure what your point is here, that your time is worth so little to you that it was better spent pruning your iPhone’s storage than paying a small amount to increase your iCloud space or that you think you should just get all the storage for free?

Where did you suggest he should get the space for free? He suggested noting of the sort.

And as far as his time not being valuable? How much time did he spend pruning he data? 5 Minutes, two hours? Without knowing that, how can you assume his time is not valuable? You seem to want to read more in his post than he actually posted.

A "small amount" is to each their own. Personally I am sitting on 195GB (of 200GB) of used space in my shared iCloud account. It has been slowly creeping up for the past few months. At some point, I have to consider jumping from paying $3 a month to $10 with no other option. $7 a month difference may be worth it to spend a few minutes pruning data.
 
This was legit hilarious Abaz. Yeah, I can only imagine a female actress at the age of 50 hitting that midlife crisis point thinking “Yes, I just won a SAG award..!”

Side note:
Jenn Aniston does look pretty freakin good for her age.

Males suffer from ‘sag’ in their old age too. Wait ‘till your balls start sagging...... not pretty.
 
Wonderful, I loved this show,and I am happy to see it get public recognition, no matter how cynical I am of award shows.

To me,  TV+ has had some really engaging content (The Morning Show, For All Mankind, See, Truth be Told, Snoopy in Space-my 3&6 both loved it) and the only miss I've found was that my 3 year old hated Helpsters. ...However, he would watch frozen 12 times in a row if I allowed it. LOL
 
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It’s obvious why Cook is pushing so hard on services. Not a lot of work involved taking 30% or 15% from an Apple TV app “channel” subscription. Same with the cut they get off of every App Store IAP. With high margins like that and Wall Street being obsessed with “services“ and recurring revenue it’s a no-brainer. As as a long time fan of the company it’s a little depressing. Sure we still get flashes of great products like Apple Watch and Air Pods but the focus now seems to be on just being a money machine and pleasing Wall Street.

Jason Snell wrote about this on his six colors website (I can’t find the article right now). It was all about how it‘s hard to get excited about Apple‘s new business model of extracting more $$ from its install base. Take Apple TV+. What reason does it have for existing other than to help grow Apple’s services revenues to offset declining hardware sales? It’s not like there’s a dearth of streaming content. It’s not like Apple TV+ content is heads and shoulders above HBO, Netflix, Amazon etc. in terms of quality. The Morning Show could have gone anywhere. It wouldn’t be out of place on any other streaming service. Apple TV+ nothing more than Apple has piles of cash to throw at content creators. But is that really changing the world like iPhone did and Apple Watch could? I can see why Ive decided it was a good time to retire from the company. The stock is having a good run up now because investors know 5G iPhones are coming. But then what?
Is it "all about the money?" It always is. The greed-as-deadly-sin argument. But people always hope for growth in income, whether as investors, employees, through self-employment, etc. "I'm making enough, I don't need more, in fact, I can get by on less" is a pretty uncommon attitude.

I guess Apple could say, "We'll stick to hardware," and find ways to sell more hardware to more people every year. But then you have Wall Street moaning that the smartphone market is near saturation, so slow/minimal growth is likely. You have the fundamental problem of coming up with new, compelling hardware capable of taking the torch of growth and carrying it forward. When hardware companies have products capable of delivering services and/or entertainment, they often turn to services and entertainment to provide some of that growth.

Apple hardly invented this. IBM was selling supplies and maintenance and consulting services to the buyers of its equipment long before it was in the computer business. The makers of player pianos produced the piano rolls to go with them. Thomas Edison followed a similar model when he invented/popularlzed gramophones and motion pictures. RCA, Philips, Sony, Columbia Gramophone Co., Dumont, etc. made gramophones, radios, TVs, CD players, and VCRs and also own/owned broadcasting networks, record labels, movie studios...

Such companies become less dependent on encouraging customers to replace/upgrade current equipment, because they earn additional income throughout the life of the product. Further, their entertainment products keep their brand name in the public eye, and can be sold to people who don't own the company's hardware.

As to Jason Snell and his lack of excitement over services and entertainment... Another person could find new electronic hardware to be equally boring. In a sense, it's all entertainment. After that, it's a matter of finding compelling entertainment. Hit products, star performers. "You're only as good as your latest hit."

Lets assume that, given enough time and money, Apple will join the likes of Netflix, HBO, Amazon, etc. in making the transition from supplying entertainment produced by others to (also) producing hit original entertainment. When that happens, all will be forgiven. Everyone loves a hit.

When it comes to services? Services are nearly always boring. They don't have to be exciting, they just need to be useful. I find backups to be incredibly useful. I find synchronization of data between my computers, iPhone, iPad, and Watch to be incredibly useful. All are worth paying for. Insurance (AppleCare) is boring. So is water, sewer, and electrical service. They all earn a boring, steady stream revenues for the companies that provide them. No big hits, just a very nice profit margin and very little drama. And like water and electricity, the customer can be wasteful or take steps to minimize the monthly bill.
 
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Love the show, amazing actors. Do t like that Cory guy, he’s so annoying, everything is a joke to him. I know a lot of other people like him tho.
 
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Not that I need to justify myself to some internet hero looking to score points, but I had only ever seen her in Friends, and that was twenty years ago. Her performance in TMS (a far more demanding role than a sitcom) was outstanding, and not at all what I was expecting.

Anything else?
So, you do own AAPL shares then.
 
Owning AAPL shares being a prerequisite to having a positive opinion about Aniston's performance on TMS is juvenile. It's an outstanding series with Aniston nailing her performance and deserving of awards.
Aniston was on the screen for 30 years or so. Was she ever nominated for anything?
 
Love the show, amazing actors. Do t like that Cory guy, he’s so annoying, everything is a joke to him. I know a lot of other people like him tho.
Your mistake would be thinking that everything is a joke to him. I know a lot of other people like him too, they are very serious and know what they are doing.
 
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