In the post “how big is iCloud,” Asymco doesn’t actually tell us, but does offer up several charts on Apple’s “services” revenues.
These are really really huge.
“Services” will therefore encompass a massive amount of revenue. The reported revenues for the fiscal 2014 were $18 billion. Including all billings, the turnover in sales is over $28 billion. For next year, assuming that Apple Pay, which is just getting started, is unlikely to contribute greatly to revenues, Services turnover will top over $35 billion. That figure would make Apple Services alone one of the top 90 companies in the Fortune 500.
He offers charts to illustrate the product mix in this $28 billion line of business.
Not addressed, is the direct impact of this on Apple’s hardware — and its quality. We can pretend that Apple is “integrated” and each part makes the whole better. This is probably a PR assertion and is certainly suspect with respect to hardware quality.
Tim Cook must spend time dealing with this massive services business. Eddy Cue, focused on iCloud and services, must focus on this line of business. Marketing, accounting and other groups as well. There is an entire sector at Apple now focused on many, many things that are not hardware quality.
I think some Android vendor, Sony would be best, should seize this opportunity and focus on building the best quality devices in the world.