Analysts expressed concern Apple had lost some market share in global smartphone sales based on Q3 figures. It is easy to overlook an equally important metric, profit. For the quarter, the iPhone maker took 104% of the profit. How can that be? I’ll use some round numbers to explain the point. Suppose Apple made $1 of profit and the Android plus Windows phones had a collective loss of $4. That makes the total profit for the smartphone industry equal $.94. If you divide Apple’s profit of $1 by the industry profit of $.94, the result is the company got 104% of the profit.

As long as new iPhones continue to be introduced with new features people want, the products will keep streaming into the market, although reduced revenue growth of smartphones is an eventual reality. Nothing can grow straight up. However, the other thing easy to miss is the double digit growth of Apple’s services revenue. The services revenue includes Apple music, Apple Pay, Apple Care, iCloud storage, iBooks, and commissions on apps in the app store. The revenues from services are recurring. Whether you buy a new device every year or not, the monthly fees continue. The incremental profits from these revenues are very high. The Apple ecosystem produces revenue across all the devices, which now exceed one billion. I remain bullish on Apple.