Wednesday, January 28, 2015

Apple's crazy iPhone sales prove that hardware still matters


A tech company just broke the record for highest quarterly profit ever recorded, and it did it by selling a supposed commodity product: a smartphone. Apple’s $18 billion profit over the last three months of 2014 was driven primarily by growing iPhone sales, which accounted for more than two-thirds of the company’s $74.6 billion in revenue. At a time when smartphones are being dismissed as undifferentiated slabs of composite materials, Apple’s making more money from the hardware it sells than it ever has before, and the average price of every iPhone sold has actually risen.


With iPads and Macs counted alongside the iPhone, Apple sold 101 million devices in the last quarter, and once you factor in iPods, the Apple TV, and peripherals like...


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