Tim Cook Iterates Apple Is Not A Hardware Company

Since its inception, Apple has primarily been a hardware company. It came up with the Mac, then subsequent computing machines, laptops and in a more recent age, music players, smartphones and tablets. However, Tim Cook reminds us, Apple is not just a hardware company, the software component is also becoming a critical part of it.

Tim Cook

Cook cited Apple’s performance during the last quarter to go with these huge claims. According to him, Apple’s revenue from the sales of software and services has totaled $3.75 billion during the last quarter alone. That is an insanely huge amount, compared to what most other vendors earn against their services and software.

The revenue includes the sum generated from the sales of iTunes music, apps, subscription services and a lot more offered by Apple. Although the company still earns more from the sales of actual hardware, such as iPhone and iPad, let’s not forget that a significant part of these iOS devices also comprises of Apple software and services.

Even after the purchase, millions of iOS users come back to Apple’s iTunes Store and other services to avail them. In other words, the company has a very sustained and growing user base which hooks up to its software/services ecosystem. Precisely because of the central importance of its software and services, Cook revealed that Apple is now dedicating some of its best resources to the software side of the company.

Clearly, Apple has plans of expanding the software side into more profitability. Cook resounded the same sentiment when he said, “Because we’re not a hardware company, there are other things we are doing and could do to have revenue and have profit flow.”

Courtesy: TechCrunch

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Salman Latif is a software engineer with a specific interest in social media, big data and real-world solutions using the two.Other than that, he is a bit of a gypsy. He also writes in his own blog. You can find him on Google+ and Twitter .

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