02-05-2024, 02:19 PM
Much has been said about Apple's service revenue, which has expanded by leaps and bounds over the last 5-7years.
A leading indicator for service revenue increases, would be increase in hardware sales that builds the "infrastructure" to provide future services. A growing ecosystem increases the sticky-ness and scalability of service revenue. So if hardware sales start to reduce, will this mean a deceleration/reduction in service revenue down the road?
Huawei profit surges 564% as it eclipses Apple in China
Sales in the first quarter rose 37 per cent to 178.5 billion yuan. The company did not provide a sales breakdown for various business segments in its filing.
As a stark contrast, Apple’s iPhone sales in China fell 19 per cent during the March quarter, Counterpoint estimated.
https://www.businesstimes.com.sg/compani...pple-china
A leading indicator for service revenue increases, would be increase in hardware sales that builds the "infrastructure" to provide future services. A growing ecosystem increases the sticky-ness and scalability of service revenue. So if hardware sales start to reduce, will this mean a deceleration/reduction in service revenue down the road?
Huawei profit surges 564% as it eclipses Apple in China
Sales in the first quarter rose 37 per cent to 178.5 billion yuan. The company did not provide a sales breakdown for various business segments in its filing.
As a stark contrast, Apple’s iPhone sales in China fell 19 per cent during the March quarter, Counterpoint estimated.
https://www.businesstimes.com.sg/compani...pple-china