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19 Oct, 19:14

Impact of Touch-Screen MacBook on Apple's Hardware vs Services Revenue Mix

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AI Summary

The author analyzes the strategic and financial implications of Apple's rumored touch-screen MacBook, highlighting a potential trade-off between hardware growth and service margin compression.

That October 28th event was reportedly going to introduce the first touch-screen MacBook. Everyone is talking about how Jobs used to oppose fingers poking at vertical screens. What interests me is the other side of the ledger: iPad Pro users are among the fattest in Apple's tax base—software goes through the App Store, with every bit of commission collected. macOS isn't like that; developers sell directly from their own websites, so Apple doesn't get any revenue. If they truly bring these users over to Mac, the hardware line wins, but the services line ends up paying out of its own pocket. Assume you're Apple's CFO. How would you price this machine?

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