Apple’s service business revenue exceeded $50 billion
The great success of Apple’s iPhone, iPad and other hardware products has made the company the most valuable company in the world. Although Apple has always emphasized the advantages of seamless collaboration between its hardware and software products, the latter has long been regarded as a way to assist hardware products, rather than a valuable business opportunity. However, in the past few years, this perception has changed to a certain extent, because software and services play a greater role in Apple’s business than ever before.
This week, Apple launched two subscription services, fitness service Fitness + and Apple One bundled service, further expanding the ambitions of the service business . With Apple TV+, Apple Music, Apple Arcade, iCloud and Apple Care, Apple’s service and subscription business has developed rapidly in recent years. As shown in the chart, since 2013, the company’s service business revenue has more than tripled , from USD 13.5 billion in the 12 months ending in March 2013 to the current (12 months ending in June 2020). Month) 51.7 billion US dollars.
Although the annual revenue of 51 billion US dollars has exceeded the dream goal of most companies, it still accounts for only a small part of Apple’s such a large scale. In the 12 months ending in June 2020, the company’s product sales reached US$222 billion, and hardware products still accounted for more than 80% of its total revenue.