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Apple used to account their software development cost as part of their product COGS. Which is what Steve's way of saying you buy iPhone for iOS. Both are the same and one. I believe this was listed in their late 00s investor notes. We dont know how much they account for those development though. It was never listed, but in the case of 2018, $10 / devices were put to Services Revenue. Which is roughly $3B annual revenue to Services Revenue.



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