The revenue streams of the giant Apple company are generally divided into products and services. The Apple revenue by Steve Jobs model is fundamentally based in hardware sales such as iPhones, iPads, Macs, and other devices. Also, at the same time, Apple generates revenue from software and services, including the App Store, iTunes, Apple music, Apple Pay, iCloud, etc.
Another aspect of Apple’s revenue model is their focus on innovation and design in their technologies. Apple’s products are mostly attractive to buyers for their sleek appearance and intuitive interfaces, which has helped them build a strong base and maintain a competitive advantage.
In 2020, Apple’s iPhone sales accounted for 54.7% of the company’s total revenue. In fact, 86% of their total revenue was generated from Apple’s hardware sales alone.
Apple’s flagship product, the iPhone, was the most significant contributor, accounting for over $41.24 billion in 2022 in their total revenue. Their Mac sales also performed well with $78.13 billion of the total revenue.
However, Apple’s revenue model was not limited to hardware sales. They also generated significant revenues from software services, such as the App Store, Apple Music, iCloud, etc. In 2020, Apple’s services segment brought in over $53.77 billion in revenue, making about 13.6% of their total revenue. In 2022, it jumped out to $78.13 billion. The App Store alone generated $64 billion in revenue.
It is estimated by Apple’s computer that a giant company to report $700 million after-tax loss odr it’s fiscal second quarter which is a sign that the third largest personal computer can even be in deeper financial trouble. By March 31, more than half of the company’s loss it was projecting for the quarter.
Furthermore, it must be noted that Apple makes revenue from the additional payments by users while paying additional fees for the warranties or extensions. Plus, they also sell compatible third-party apps and accessories for users.
Overall, the company’s focus is based on a combination of hardware sales, software and services, including licensing agreements. While hardware sales, most particularly iPhone sales remain the core source of revenue, Apple’s focus on innovation, design, and building a highly integrated ecosystem has allowed them to generate greater revenue from over time from their service segment as well.