How do you make Apple billions of dollars from the sale of services

Apple became focused on services for the implementation proceeds, in the last quarter achieved proceeds of $ 10.9 million, which represents an increase of 19% year on year, it is planned to increase the company’s investment in the service declaration for the service of broadcast entertainment and news next week.

The proceeds of the services overtake the rest of the Apple products except the iPhone, including the proceeds of computers Mac, which amounted to $ 7.4 million last quarter and the proceeds of the iPad, which amounted to $ 6.7 million proceeds of the rest of the products (wearable devices, home appliances and accessories), which amounted to $ 7.3 million. But service aside, what are the services source of revenue?

Music service

It is reported that the service sector is most profitable, he estimates the number of customers is estimated at 56 million users in December 2018, by comparison, Spotify has 96 million customers in common.

Apple provides a free service, but if we assume that all users pay 10$ per month (with packages family discounts annual description of the relations students, may not be the right number, but it’s a rough estimate) this makes the revenues music $ 6.7 million years.

The App Store “August store”

As the number of downloads from the App Store by about 170 million until May 2018, all held of the launch of the App Store.

Interesting that the bulk of the revenue does not come from direct payments, but the free games offer purchases inside them like free candy balls and subscription applications as well as Netflix tundra and YouTube; and above 50 the application of the terms of the realization of proceeds is either a great service to depend on graphics a subscription or free game basically.

By June 2018, revenues from application developers and App Store $ 100 million over the past decade, and because these revenues represent 70% of the total proceeds of the applications, the 30% held by Apple, estimated at $ 42 million for the last decade.

In this regard it should be noted that the Supreme Court of the United States consider the suit accused Apple’s practice of the occupation. Also raise the Spotify turn another lawsuit to the European Union; saying that the deduction of 30% of the proceeds gives the Apple TV privileges unfairly promote its own music service.

ICloud

In theory, almost every user of iPhone, iPad and Mac is cloud storage service “iCloud”, but the revenue lies in the use of more than the space of 5 gigabytes.

Enjoy the iCloud advantage, big on service competition, being the only way to create backup copies of iPhone, iPad, and online, including all types of content on the iPhone, and therefore capture a lot of images like requires the purchase of additional storage space, which you know Apple well not provided the option to add memory storage to external bodies, to forced the user to pay $ 1 per month for 50 gigabytes

And even if not all users of iOS subscribers iCloud paid, 12 dollars a year more than a million users for iOS devices, or slice them, paving the proceeds of enormous. While I didn’t reveal Apple’s never been about the revenue, stated Eddie Kuo, Vice President of services and software the internet Apple company the total number of users of the iCloud reaching 782 million in 2016, indicating all users.

ITunes Books Apple

No longer iTunes as it was the existence of streaming services like Spotify Apple TV Music Netflix are available, but still I don’t share the beliefs of the proceeds is its display of diverse content compared to the purchase steps are simple, and the interface for all Apple devices, also expanding recently to be available via Samsung Smart TVs.

Despite the problems with the Amazon led to fined Apple $ 450 million, still shop the Apple Books of the best places to buy e-books, making it an important source of revenues Services.

Includes the iTunes service is famous called iTunes Match cost $ 25 a year, where you synchronize songs and Music iTunes across devices and user.

Electronic payment service “Apple Pay”

Apple get a small fee from each transaction using the electronic payment service, and provided graphics for Bank of America in 2014 by approximately 15 cents of every 100 dollars, 0.15% of the amount that is converted.

The Apple TV is that the conversion operations amounted to 1.8 million last quarter, more than double the operations for the same period last year. But there is no estimate of the revenue to Apple of these processes.

This it is reported that the fees be if you use a debit card, the credit card requires the to deduct a 3% fee.

Guarantee fee AppleCare

Service warranty possible on Apple devices; discounts on replacement screens, hardware parts, and are varied according to the device, as the program of the renewal of the iPhone. Currently there is no estimate of the Revenue Service, but the guarantee fee start from $ 129 and up to $ 200 on models of the iPhone, and 249 to 369 dollars on computers and MacBook laptops, from 100 to 249 USD on computers Mac and Mac.

Licenses

It is service oriented companies, not the average consumer, for example, so you can Google to make its search engine is the default in iOS, you have to pay for Apple TV vs Mali, revealed the court documents that this amount reached $ 1 billion in 2014. Although the numbers of the sector’s revenues is opaque, he estimates, some analysts recently estimated at $ 9 billion a year.

Google Maps, Siri, and free

The knowledge that these services are free, but odd that it is the last quarter adopted by the Apple paid services, where paid for by the customer when buying the company’s devices. It is interesting that after the direction of this approach leap’s total revenues significantly.

Source: The Verge

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