Apple is not just a hardware company

It's understandable to assume $Apple(AAPL.US)$ will be hurt by inflation. Rising prices might force some consumers to hold off buying Apple's latest devices. But Apple isn't just a hardware company. For years, it quietly built a slew of software-as-a-service ( $SaaS Solutions(BK2520.US)$ ) offerings that generate recurring revenue through subscriptions.
Apple's services segment encompasses its AppleCare warranty and repair program, digital payments, cloud storage, advertising products, and digital content, which includes music, movie, TV, and video game subscriptions. This division has seen steadily rising revenue over the years, going from $46.3 billion in fiscal 2019 to $68.4 billion in fiscal 2021.
The segment got a boost from advertising revenue when Apple changed its ad policies last year to bolster consumer privacy. Customers can now block third-party apps from targeting them with ads. Consequently, companies reliant on advertising, such as $Meta Platforms(META.US)$ , saw revenue from their iPhone apps dramatically decline. Meanwhile, Apple benefited as advertisers shifted budgets to its ad products.
Cloud subscriptions are another key contributor to services' sales growth. With our ever-increasing reliance on digital content, such as photos taken with mobile phones, consumers need a place to store that content. Apple's cloud provides a solution. Since we're unlikely to remove the hundreds, even thousands (in my case), of photos and other content uploaded to Apple's cloud, the company has a revenue stream resilient to macroeconomic challenges.