Many Apple pundits and analysts point to its services business as the future of the company and a major source of future revenue. I don’t deny that services revenue is steadily going up while hardware revenue is heading in the opposite direction.
Yet, I still see Apple as primarily, fundamentally and foundationally a hardware company. Its services exist to sell more hardware. When Apple makes money on services — sometimes, a lot of money — it only adds to the bottom line.Continue reading