Apple Gains From Selling You IPhones With Minimal Storage

But past the cash cow that is new iPhone earnings, in addition, it revealed how it’s profiting by selling components that don’t have enough room to hold all its customers’ photographs, apps and videos.

The iconic iPhone maker this week said it sent 77.3 million iPhones, along with 13.1 million iPads and 5.1 million Macintosh computers.  

However, the interesting number is the expanding size of the iPhone army–currently in 1.3 billion people, up from 1 billion two decades back.  

“That’s 300 million people it is possible to promote to,” states Patrick Moorhead, an analyst with Moor Insights.

The No. 2 branch at Apple is Services –including Apple Music, iTunes, iCloud– currently brings in more revenue than Macs or iPads, selling applications, and also to Moorhead, it’s not only music subscriptions and iTunes movie rentals which are fueling the charge, “but most of those iCloud updates”  

Services climbed to $8.5 billion, from just over $ 8.5 billion in the year ago quarter, thanks to all those folks who probably awoke to nagging messages from Apple that their iPhone storage was full, they needed to update, pronto.

On the entry level  16 GB mobile, the system takes up 4 GB of space, and apps now are so big that they clock at 1 GB. In spite of the now conventional starter 32 GB phone, snap some photos and movies, hold onto e-mails and your texts plus a small number of programs, and you maxed out.

With 5 GB of storage, although the basic service that is iCloud is absolutely free. Apple sells iCloud updates starting at 99 cents yearly for 50 GB of storage, or $2.99 per month for 200 GB. Unless iPhone users are savvy enough to figure out options, they’ll be out of space in their devices.  

Depending on the trajectory of past performance, if Apple never released another iPhone, and simply sat back and allow Services do its thing, estimating  about $8 billion for each of the next four  quarters, then it could generate $30-$40 billion annually in revenues only from storing people’s photographs and movies, and selling them movie rentals and audio subscriptions.  

Think about that for a Second.

McDonald’s, the country’s restaurant chain, sells roughly $25 billion worth of burgers and each year. Than it does Macs, Apple sells Services; today it’s poised to sell more applications rentals than McDonald’therefore generates with Big Macs.

In other tech news this week: 

This week’s Talking Tech podcasts

–We started the week out of our recent trip.

Part 1: Self-driving Slippers?

Get ready for a test that begins in March from auto giant Nissan.

Component 2: Gadget Lust –all about the trendy products we found in electronics shops which are not available here.

Part 3: My interview with a Japanese robot. Listen in as I run a dialogue with Erica, a Android.  

–How to photograph the Super Moon.

Alright, it has come and gone but get ready for another one by tuning in!

–Ditch the passport together with biometrics. We talk to exits in the coming years and some top Customs official about enormous changes in flight entrance.  

–Sorry folks, but you are going to be paying more for the next iPhone. That’s the week’s earnings announcement from Apple’s message.