andiwm2003 said:
that is certainly true. but we're talking about apple. they don't sell nearly enough software in the moment to make up for a drop in hardware sales. they high margin is software is certainly a reason why we see apple releasing lots of software recently (ilife, iwork, aperture....).
i still doubt that apple could make it without the hardware sales (at the current time!).
also one thing that we should not forget. apple not only sells hard and software they also sell an image. like harley davidson. take away one part and you might lose the overall image of the company in the puplic.
That's a good point, and I think it further drives the idea behind Job's statement, "It's all about the software," and that OS X on everything is very possible/likely.
Another thing to consider, is that it is often mistakenly claimed that Apple sells more computers than they do software. This isn't true at all.
This is simply because you cannot, under any circumstances, buy a computer from Apple that is void of all software. Every Apple computer purchased is one purchase of OS X, and one purchase of iLife as well. Those don't come "free" per se; Apple works the price into the total package.
So every time anyone buys a Mac, they are also buying OS X and iLife. Every Apple computer sale contains at least 2 software sales.
And people buy new software much more frequently than they buy new computers. No one buys a new Mac every year or every other year to run the same old OS 10.3. They buy one Mac, and keep buying new versions of OS X, iLife, and other misc. Apple software.
There are people buying Tiger for old G4's.
Once you consider that every computer sale is at least 2 software sales, plus most people tend to upgrade and buy more software later, at
the very minimum, for everyone 1 Mac sold, there are 2 softwares sold; I'd estimate the average user upgrading once, and buying one extra peice of software from Apple. That's 4 softwares for 1 Mac.
Even at bare minimum, Apple sells twice as much software as they do computers. Factor in the much higher profit margins, and it's easy to see that they not only sell more software, but they also make more profit in doing so.
Apple is not a hardware company. They use the software to force a hardware sale.