Apple stopped innovating and makes MORE money?

Apple's hardware innovation has slowed, yet the company earns more than ever. The key is its services segment — iCloud, App Store, Apple Music — which generates over $1 billion in revenue at 70%+ profit margins, representing a quarter of total revenue. The iPhone has shifted from a revolutionary product to a gateway device that locks users into a recurring-revenue ecosystem. With Apple Intelligence, Apple is now positioning AI features as premium subscription upsells, showing that innovation moved from hardware to monetization strategy.