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While many people have always paid close attention to Apple's iphone, the company has another responsibility center that has been steadily growing. The company's services
While many people have always paid close attention to Apple's iphone, the company has another responsibility center that has been steadily growing. The company's services unit, which includes the App Store, Apple Music, iTunes, and Apple Pay, has moved past the Mac to become Apple's second largest business unit. While Apple services' annual revenues of $24 billion are only 11 percent of the company's overall sales, this amount exceeds the total sales of companies such as Starbucks, Mastercard, and Visa. Ben Schachter, an analyst at Macquerie Research, estimates that Apple's services business unit earns a gross margin of 78 percent, which compares favorably with the company's overall gross margin of 38 percent. Mr. Schachter also projects that within a few years the services business unit will grow its revenues to 19 percent of Apple's total sales. Source: Steven Russolillo, "Apple's Secret Profit Center," The Wall Street Journal, January 31, 2017, p. B11. ections ure to read all directions prior to engaging with this activity. for this discussion board, I would like you to think about what the underlying casuses for the shift in sales to the services segment of Apple's business. What do you think is causing this? Why are the other segments (iPhone and Mac) not growing at the same rate? Use the 'reply' arrow below to start your initial post. n your initial post, I would expect at least a 200 word response. Then, in two peer responses provide constructive feedback to two other students' posts. Each peer response should be at least 50 words. Be sure NOT to use "Lagree or I disagree language
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