Services $31.6B - The Real Cash Machine No One Talks About 💰 $AAPL
Everyone watches iPhone, but Services is why Apple trades at 35x forward.
June quarter Services hit $30.7B (+12%). Q4 expected $31.6B. That's recurring, high margin revenue - App Store, iCloud, Apple Music, Apple Intelligence+.
Think: iPhone is hardware sale once every 3 years. Services is monthly rent from 2.2B active devices. Gross margin on Services ∼75% vs iPhone ∼45%.
With Apple Intelligence monetization coming, Services could grow >10% through 2030 per Morningstar. That's why fair value $290 vs current $344 - market pricing growth.
FX headwind -2.5% hurts Services overseas, but tariff refunds help margin 47-48% guide.
Key for tonight: Services growth same as Q3? If holds double-digit, Apple can handle iPhone supply miss.
Services + installed base = moat.
#EarningsSeason #BinancePick #AppleEarnings $BTC $ETH
Everyone watches iPhone, but Services is why Apple trades at 35x forward.
June quarter Services hit $30.7B (+12%). Q4 expected $31.6B. That's recurring, high margin revenue - App Store, iCloud, Apple Music, Apple Intelligence+.
Think: iPhone is hardware sale once every 3 years. Services is monthly rent from 2.2B active devices. Gross margin on Services ∼75% vs iPhone ∼45%.
With Apple Intelligence monetization coming, Services could grow >10% through 2030 per Morningstar. That's why fair value $290 vs current $344 - market pricing growth.
FX headwind -2.5% hurts Services overseas, but tariff refunds help margin 47-48% guide.
Key for tonight: Services growth same as Q3? If holds double-digit, Apple can handle iPhone supply miss.
Services + installed base = moat.
#EarningsSeason #BinancePick #AppleEarnings $BTC $ETH
