…lity will be big, a nice way to make iDevices more attractive, more helpful, and more fun. I agree. The ARKit running on the company’s large installed base (100M or more) of “unfragmented” iPhones is a way to generate more Services revenue (apps, mostly). But, again, it’s not the Holy Next Big Thing.
…downloadable music that fueled hardware sales, while increasing iPod numbers fueled iTunes revenue. By 2006, iPod revenue reached $7.7B, surpassing the Mac’s $7.4. (As reported that same year, Music plus Software and Services already reached $3.2B — but these numbers are imprecise, they include some accessories.)
With Services, Apple enjoys the benefits of a virtuous circle: Hardware sales create Services revenue opportunities; Services makes hardware more attractive and “stickier”. Like Apple Stores, Services are part of the ecosystem. Such is the satisfying simplicity and robustness of Apple’s business model.