Dana Blankenhorn, Yahoo! Finance:

Apple is expected to have revenue of $50.94 billion for the September quarter, which is the fourth quarter of its fiscal year, and earnings of $1.86 per share. Margins are expected to be 38%.

Without revenue from services that would not be possible.

Dana is making the case that Apple is morphing into a services company.

More from the article:

The man behind Apple’s retail stores, George Blankenship, says services are also the future of the shopping mall. In his opinion, easy shopping, fast WiFi, and delivery services will make shopping centers relevant for millennials and their Generation Z siblings, and I believe him.

Because Apple owns its own cloud data centers, it can earn maximum margins from this trend. Instead of renting the space it uses for services, it owns the space, with all the tax benefits. Steve Jobs dismissed services as the tail wagging the dog. For Tim Cook, this is the dog.

I find this fascinating. For Steve, the product is the dog, the Mac, iPhone, iPad, and Apple Watch, collectively, is the dog. The services are the tail.

Is Apple truly becoming a services company? Is this inevitable, the only way Apple can maintain its momentum, size, and revenue stream?