Hi,

Thanks for bringing that up Jason.  I'm not wishing to be a defender, but we do 
need to look at the big picture.  Whether Mac or iOS, Apple introduced and 
continues to maintain this software as a no-cost item.  No, I'm not sure how 
much it costs on the Balance Sheet, but it has to affect the overall expenses 
category for sure.  MacOS, iOS, stock apps, numerous other apps, Apple School 
Manager and other education services, as well as accessibility features are 
continually developed and updated at no visible charge to the end user.  Of 
course, these are all encompassed in the Apple experience, so they're not 
really free, but we don't need to buy most of this separately.  One could argue 
that why should I pay for things in this manner when I don't use them.  My 
answer is two fold.  First, by spreading this across the cost of all hardware 
and other services, each individual actually pays less for the software.  
Second, some of us could say that I don't need Pages, or iMovie, or GarageBand, 
so why should I pay for them, but there's a huge population that could say why 
do I need to have accessibility features.  If the cost of accessibility was 
just passed on to us as accessibility users, it would be much more expensive to 
purchase and likely less of a priority to Apple due to the smaller population 
base.  In addition, it is really excellent that a six year old device such as 
the 5S can still run the latest iOS, so upgrading is not a necessity, mostly a 
desire.

All this doesn't mean that I like having to spend over a grand on a phone, 
along with the knowledge that their profits are through the roof, but it is a 
capitalistic economy that we live in at the moment and there's only so much 
that you can go against your shareholder's wishes.

JMO.

Later...

Tim Kilburn
Apple Teacher
(with Swift Playgrounds Recognition)
Fort McMurray, AB Canada

On Sep 27, 2018, at 06:54, 'Jason White' via MacVisionaries 
<[email protected]> wrote:

My current phone is an iPhone 5S purchased in 2014. I think the upgrade to the 
iPhone XS (expected to arrive today, incidentally) is worth it on several 
grounds, including the better LTE band coverage that it offers, the dual SIM 
capability, superior performance, and other details that I've weighed in making 
the decision.

Generally, I'm of the view that one should buy high-quality hardware and make 
it last until there's a good case for upgrading. If I had a more recent device, 
I wouldn't even consider the purchase.

Am I correct in remembering that Apple makes more revenue from the associated 
services (app purchases, books, music, video, and so forth) than from hardware 
sales?

Based on what I've read, it's no secret that they operate on high margins. Of 
course, one is also paying for the software development costs, the technical 
research in both hardware and software, and their other operational costs - I 
don't know what that amounts to per unit. However, it seems reasonable to 
conclude that they make a substantial surplus. The accessibility features are 
undeniably good, apparently now including additional braille display navigation 
commands as of iOS 12 that I haven't explored yet.

On 9/27/18, 07:28, "'Donna Goodin' via MacVisionaries" 
<[email protected]> wrote:

   I have to believe that that time will come.  Sure, there are a bunch of 
silicon valley geeks with money to burn, but that isn't the reality for most of 
us.  And frankly, even if I had that kind of money, I would object to spending 
a thousand dollars a year for a phone, that's ridiculous!  I used to upgrade 
every year.  But when you spend $1000 for a phone, you want to at least get a 
couple of years out of it.  I'm sitting out the phone upgrade this year, and 
maybe next year too.  I doubt I'm the only iPhone X owner who's doing that.  So 
sure, they get more money per phone, but it kind of balances out if people who 
used to upgrade yearly suddenly start upgrading every other year, or in my 
case, maybe every third year.  And yeah, I'm super excited about the new watch, 
but I'll do the same thing I did with my series 1, use it until I can't any 
more.
   Cheers,
   Donna




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