Although Apple has seen weak demand for the iPhone models of 2018, the company expects it to rely on services for further growth. Companies listed in this category include AppleCare, Apple Pay, the App Store, iTunes, Apple Music, and more. It is the second largest revenue generator for Apple (after the iPhone of course) and is considered the most profitable part of the company. Apple CEO Tim Cook has pointed out that the company's service business benefits from the large installed base of iPhones, which is estimated at 1.5 billion units worldwide. This isolates the service business from weak iPhone sales.
Luca Maestri, Apple's chief financial officer, points out that Netflix is the largest developer on the App Store, contributing less than .3% to total revenue over the past year. In other words, the company does not seem to worry about developers rejecting the Apple Tax. Even if Apple is not worried, Sacconaghi fears a growing "dissatisfaction" and tells customers today that this could become a major revolt of the developers. His main concern, however, is a case before the Supreme Court. If the court issued a ruling that would make the "Apple Tax" a monopoly overstretching developers, service growth in sales could be severely affected. A judgment is not expected because the court has not yet decided whether the plaintiffs have a right of action.