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Apple AI vs. Microsoft AI
(lemmy.world)
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this post was submitted on 12 Jun 2024
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I think it’s also partly because apple’s business model is more compatible with not earning money from selling your data (not saying they are also doing that). You buy a windows keys once and that’s it, but apple customers often buy into their ecosystem meaning that apple can earn recurring money from overpriced hardware.
It's not just that hardware price that benefits Apple. Their services revenue was 30% of total revenue last year and it's growing. Between the App Store cut, AppleTV+, iCloud, and all the others, they are running headlong into a world where selling an iPhone is a smaller piece of the pie than selling apps and cloud storage is.
Damn… 30% is actually way more than I thought. Profit margins are probably lower, right?
They have to be, but even still it’s digital goods. So, price of production is peanuts once development is covered — just infrastructure.
Not with apple tv+, I believe only netflix makes profit of streaming.