HACKER Q&A
📣 f0e4c2f7

How does Apple's business model work?


After years of working in tech I feel like I have pretty good insight into how adtech and SAAS works.

With Apple it's another story. Clearly they have an extremely good business model. Perhaps the best one if you base it on Market Cap.

Is it the integration of hardware and software? Focus on Product? App Store Tax? Ownership of supply chain?

I suspect some combination as well as other factors I don't understand. I tried googling for a stratechery article or something on this but I couldn't find anything that made me feel like I had a good working model.

  👤 beernet Accepted Answer ✓
They manage to keep an extremely high margin while contiuing to grow revenue quickly. I'd advise you to take a look at their past revenue and EBIT numbers and take a look into the year end reports for the breakdown of the numbers to their products/services. The iPhone is still the strongest product.
👤 sharemywin
- Transition costs for UI is much higher than the value to switch.

- Poor man's luxury item - just about anyone can "upgrade" to the more desired product

- the added cost per month isn't worth most people's time to care about.

👤 trevorboaconstr
They sell stuff people want.