Apple says a focus on software and services helped boost profits.
๐ Background: We know the supply chain has been crunching down on all kinds of companies' bottom lines (think: Amazon, ASOS).
๐ What happened: Oddly enough, Apple is killing it. In fact, it saw sales soar to US$97 billion last quarter, which is the company's third-best quarter of all time. And its profit hit US$25 billion (FYI that's the market cap of Coles!).
๐ What else: Apple may be selling less devices these days, but its digital services segment is picking up the slack. Big time.
๐ก Apple's long been known for its hardware products, but it's beginning to place a major focus on different forms of revenue through its software and services segment.
๐ก Apple Music, the App Store, iCloud, Apple TV+... these all tend to have much bigger margins than Apple's physical products. In other words, each dollar of service sales boosts Apple's profits a lot more than its hardware sales.
๐ก This helps the company continue to see serious growth, even though sales in its devices segment might be slowing down.
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