Although Apple had a slow search for iPhone models in 2018, the company believes it can count on its services department for continued growth. The business included in this category includes AppleCare, Apple Pay, App Store, iTunes, Apple Music and more. It is the second largest revenue generator for Apple (of course, after the iPhone) and is considered the most profitable part of the company. Apple CEO Tim Cook said the business services of the company are taking advantage of the large installed iPhones base, which is believed to reach 1.5 billion units globally. This isolates iPhone's weak sales business.
Apple Chief Financial Officer Luca Maestri points out that although Netflix is the largest developer in the App Store, it contributed to less than .3% of total service revenues last year. In other words, the company does not seem too worried that developers reject the "Apple tax". Even if Apple does not worry, Sacconaghi is afraid of the growing "dissatisfaction," telling its customers that this may turn into a big rebellion on the part of the developers. His main problem, however, is now before the Supreme Court. If the court comes up with a decision that results in "Apple's tax" being called a monopoly that exceeds the developer's costs, it can have a major impact on the growth of service revenues. The decision is not expected soon, as the court has not yet decided whether the plaintiffs are entitled to sue.