Apple Services is now a giant

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Record Service revenue for Apple in third quarter! Apple Services segment is now bigger than Amazon Web Services and Netflix combined!

Comments (15)

15 responses to “Apple Services is now a giant”

  1. Jules Wombat

    Apple Services which actually run on Microsoft Azure (or perhaps Amazon AWS) Cloud Services infrastructure

  2. John Scott

    The one thing Apple is losing on is Apple Music. With Spotify claiming 60 million paid subscribers vs around 20 million or so for Apple. I think its clear Apple is losing ground quickly in music streaming which like it or not is the future of music. People today seem OK with not owning anything in terms of content and yet Apple kept pushing the own it format way too long.

    I used to be all in on Apple services but today I don't even use their email, I occasionally buy music from iTunes but would not even consider Apple Music as a option today. Yes, Apple still makes loads of money, but their foot print is shrinking in many ways.

  3. Nic

    Apple Services - runs on Azure

    Netflix - runs on AWS

    Apple cannot maintain their own infra for these things, despite all that money. I find that kind of interesting.

    • lvthunder

      In reply to Nic:

      Maybe they just choose not to. Why spend all the resources (time, people) to do that when as long as it works the backend doesn't effect the users experience.

    • GT Tecolotecreek

      Apple cannot maintain their own infra for these things, despite all that money. I find that kind of interesting.


      You seem to be implying they don't have the capability to do so. Obviously they have the financial deep pockets (256B cash on hand) to do so. They have already shown they know how with large and growing centers in Nevada and North Carolina. Couple points to consider: it takes takes time to build new centers. They have announced new ones coming both in Europe and I believe the far east. Their centers are typically with zero carbon footprint so solar/wind infrastructure needs to also be build for support. Approvals for projects of their scale can take years. Secondly, Apple takes security and privacy very seriously and using third parties like Azure/AWS is the weakest link in the security chain. When they bring it all in-house they will have full control. I think over the next 2-3 years you will see it all moving in-house with the only downside being a loss of revenue to MS. Apple has to be writing a pretty substantial check every month for those Azure services.

    • Dan

      In reply to Nic:

      Apple services do not run on a single platform.

      http://www.networkworld.com/article/3176085/cloud-computing/amazons-aws-s3-outage-yesterday-impacted-apples-services.html

  4. dave0

    Looks like it still holds true that the App Store generates lots of income for developers. How does the Play store compare?

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