This is not something that I know much about, but having heard arguments
whether Apple is a hardware company or software company, it seems to me
they are both.
Computer hardware accounted for 46% of their revenue last quarter.
Hardware sales of all sorts accounted for 86% of their revenues.
'Software and other' (which doesn't include the iTMS) accounted for 7%.
(source <http://images.apple.com/pr/pdf/q205data_sum.pdf>)
There are no real arguments. Until Apple can find a way of replacing
85% of their revenues with software sales, they're most *definitely*
a hardware company. Their software is an inducement to buy their
hardware.
Let's not forget the other major source of hardware profit: the iPod.
It's all market growth and profit, there.
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