Apple has multiple revenue streams.  The items that are most often noted are: Macs, iPods, and iPhones.  However, there are other things that contribute to Apple’s bottom line.  The diagram below gives an overview:

Apple Revenue Streams

[Blue = hardware; Orange = software/services]

Besides the Mac, iPod, and iPhone, Apple makes money in the following divisions:



Apple Display

  • “Made for iPod” program where Apple receives a 10% royalty.
  • Cinema Displays
  • Mice
  • AirPort
  • TimeCapsule
  • etc.




  • The “hobby”

iTunes Content



  • Music
  • Videos
  • Ringtones
  • Audio Books



Apple MobileMe

  • “Exchange for the rest of us.”
  • Subscription service.




  • Extended warranty.




  • Mac OS X
  • iLife
  • iWork,
  • Final Cut Studio
  • Aperture
  • Logic
  • Shake,
  • Remote Desktop
  • WebObjects
  • xSan
  • App Store where Apple gets a 30% cut of all iPod/iPhone software sold.

Apple has created an entire ecosystem in which it makes one purchase lead to the next.  This is part of Apple’s “Halo Effect,” a brilliant business model, and a continuation of Steve Jobs’ Master Plan.

For example, a customer may purchase an iPod, which may lead to purchasing content from iTunes, iPod accessories, and AppleCare.

If satisfied with the iPod, the user may purchase a Mac, which may leads to Mac accessories such as a Apple Display or TimeCapsule; software purchases; and services such as MobileMe and AppleCare.

If the user then decides to get a iPhone, they contribute to Apple’s revenue stream with the potential to purchase from the App Store, in addition to iTunes content, MobileMe, and AppleCare.