How Apple makes billions of dollars selling services - The Verge

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More than ever, Apple wants to sell people constant, ongoing subscriptions for things they can do on their phones. Cook also said that Apple is on track to double its services business from to Last quarter saw a 19 percent increase year over year. And that balance will likely only continue to shift as Apple starts to push services harder and introduces new services to which people can subscribe.

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The music subscription service had 56 million customers as of Decemberaccording to the Financial Times. For comparison, Spotify had 96 million paid customers as of February The company offers free trials, and its service also comes bundled with some Verizon wireless plans.

Siri can make calls or send texts for you whether you are driving, have your hands full, or are simply on the go. Siri can help. Let Siri finish your sentences for you. Set alarms, timers, and reminders. Get directions.

And Apple takes a cut of each of those in-app purchases and subscriptions. That said, Apple has recently come under fire for the App Store model in the past few months: the Supreme Count is hearing an iOS App Store antitrust lawsuit that alleges Apple has an unfair monopoly on iPhone apps.

Cost: Depends on content purchased.

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How Apple makes money: in-app purchases in games, app sales, app subscriptions. But for revenue, the lit trading corporate part here is the paid plans, which give users additional storage for a monthly cost. And that storage pool counts toward nearly everything on your phone. Take too many pictures, for example, and your phone stops backing up, which creates a real incentive to shell out for more than the scant siri how can you make big money Apple gives for free.

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The GB and 2TB plans can be shared as a family plan. How Apple makes money: subscription fees. Want to rent a movie on your Apple TV for a movie night? Also included here is Apple Books, which is basically iTunes, but for books.

How Apple makes money: Purchased content, subscription fees. There were 1.

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That cut appears to come from the bank that issued the card with which Apple Pay is being used. Reports fromwhen Apple Pay launched, said the fee for US banks was 0.

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Last quarter, Apple said there were 1. Apple also makes money off of Apple Pay Cash.

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The service is free to use when sending money with a debit card, but it charges a 3 percent fee for any funds sent using a credit card. Cost: Three percent of any funds sent using Apple Pay Cash tied to a credit card.

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How Apple makes money: Transaction fees from users, banks. How Apple makes money: Warranty fees.

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Apple sells licenses to companies to get their services built into iOS, like how Google is the default search engine or The Weather Channel provides weather data. Cost: Nothing, unless you prefer Bing for search.

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How Apple makes money: Licensing payments from companies like Google to be featured on Apple products. Maps, Siri, free iCloud This is where things get weird: As of its most recent quarter, Apple now takes part of the sale price of every iPhone, iPad, and Mac and converts it into money for services, which it then spreads out across multiple quarters.

Cost: Free? How Apple makes money: Hardware purchases.