The Expansion to Services: From Hardware to Content and Subscription Giant 🚀
In recent years, Apple has consolidated a dual business strategy, where the sale of cutting-edge hardware is complemented by a robust portfolio of digital services.
While physical products remain the largest portion of revenue, subscription services generate a colossal average of US$$ 13 billion per quarter.
The App Store It's the crown jewel of this strategy. Launched in 2008, it has evolved to become a trusted and secure marketplace for millions of apps.
With a team of more than 120 editors, Apple will curate apps to ensure quality, security, and privacy, building unwavering trust with users.
In addition to being a hub for innovation, the App Store is an extremely lucrative passive revenue stream, with Apple taking a 30% commission on all transactions.
Other services, such as Apple Music, iCloud, and Apple TV+, extend the reach of the ecosystemThe iCloud cloud storage service, for example, syncs photos, documents, and settings across all your devices, strengthening connectivity.
The company encourages subscriptions to these services through the Apple One plan, which bundles subscriptions like Music, TV+, and iCloud+ into a single price and allows sharing with up to five family members, increasing retention and perceived value for consumers.
