Apple's profit margins on many services are at 76% (according to Forbes: https://www.forbes.com/sites/jonmarkman/2026/01/13/apples-de...), over twice that of their hardware sales. Margins are higher on reselling licensed content (their Spotify and Netflix alternatives), but their customer base for those is still rapidly growing according to their 2025 report.
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Apple's profit margins on many services are at 76% (according to Forbes: https://www.forbes.com/sites/jonmarkman/2026/01/13/apples-de...), over twice that of their hardware sales. Margins are higher on reselling licensed content (their Spotify and Netflix alternatives), but their customer base for those is still rapidly growing according to their 2025 report.
Tim Cook said it himself: Apple is not a hardware company (https://www.businessinsider.com/tim-cook-apple-is-not-a-hard...).