GP probably meant that people pay more and more for apps. They buy more apps or more expensive apps or more people buy apps. In other words, even with rate staying the same Apple has ever increasing revenue from the App Store.
And the GP would be wrong. Apps have never been cheaper and the App Store is a prime reason. The drive to $.99 or free apps started there.
Apple's increase in services revenue is primarily due to the incredible number of Apple devices in use, as well as the increased number of services being offered now.
I’m curious about your “apps have never been cheaper” comment. Is that actually true? Does that take into account long term ownership (recurring subscriptions)?
When the App Store first launched, it wasn't unusual to find apps being sold for more than $20. That quickly dropped to where it was hard to find an app that cost more than $.99. Of course this meant that many large vendors simply didn't create or sell apps in the Store, fearing to cannibalize their products.
Now the model has shifted to subscription based apps. But even with these, there's a huge amount of free apps as well. It appears that the majority of income comes (as it does in Las Vegas) from "whales" who spend an disproportionate amount of money, primarily on games.
