Apple’s profits margins are legendary, but topping them all are its margins for 'services'. These software-based features run at around 70% – roughly double those for hardware like iPhones.
Car makers, used to working on margins of up to 10% if they’re really focused, slaver at the thought of profits like that.
Now they think they can lift margins to tech-company levels with the same strategy: offering software-based services that car drivers will be happy to buy regularly.
