>thereby requiring the use of subscriptions as the only viable business model for developers. That is Apple's primary revenue stream by far, and they're making far more money now that we have to subscribe to workout apps instead of buying them once and using them for years.
Apple earns almost twice as much revenue from selling iPhones ($210B per year) than it does from "Services" ($109B), and "Services" includes far more than just App store commissions.
Thanks for the correction. I should have said profit, and I should clarify further: gross profit for the App Store and global iPhone production is similar ($84B and $88B), but the App Store and other services have nearly double the profit margin and is growing much faster than physical products.
Apple earns almost twice as much revenue from selling iPhones ($210B per year) than it does from "Services" ($109B), and "Services" includes far more than just App store commissions.
https://sixcolors.com/post/2025/11/apples-fiscal-2025-in-cha...
https://bullfincher.io/companies/apple/revenue-by-segment
However, I do see the incentive for Apple to push subscriptions due to the enormous scalability and thus resilient margins.