apple trying to move toward life after iphone

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TOS
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apple trying to move toward life after iphone

Post by TOS »

executive shake-up points to major reshifting of focus away from iphones

Though the iPhone still contributes about two-thirds of Apple sales, the company has encouraged investors to focus on a growing services business, which includes streaming-music subscriptions, app-store sales and mobile payments. Services are expected to top $50 billion in sales by fiscal 2020 and contribute more than about 60% of Apple’s total revenue growth over five years, according to Morgan Stanley , which estimates the iPhone fueled 85% of growth during the prior five years.

The services business also is key to preserving iPhone loyalty. Just as Amazon has used media and music offerings to increase the value of Prime membership, Apple executives view its mobile payments, music service and coming video offering as ways to encourage current iPhone owners to buy future Apple handsets.

Apple has said it aims to pass 500 million paid subscriptions across its platform by 2020, up from 360 million now.


interesting

think they can pull it off?
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Betonhaus
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Post by Betonhaus »

Not sure. Music streaming seems easier because everyone pretty much has access to the same songs so Apple gets a leg up by being pre-installed, but video streaming is already pretty fractured and the rumourmill doesn't give me confidence in Apple's in house productions. Plus I think the math works out to the fact that even if they got double the subscribers Netflix has it still wouldn't offset a serous drop in iPhone sales.

I get that Apple is drumming up their services business, but I can't see them pivoting away from hardware unless they intend to take a massive drop in revenue.
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Post by dv »

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Post by maurvir »

TOS wrote: executive shake-up points to major reshifting of focus away from iphones

Though the iPhone still contributes about two-thirds of Apple sales, the company has encouraged investors to focus on a growing services business, which includes streaming-music subscriptions, app-store sales and mobile payments. Services are expected to top $50 billion in sales by fiscal 2020 and contribute more than about 60% of Apple’s total revenue growth over five years, according to Morgan Stanley , which estimates the iPhone fueled 85% of growth during the prior five years.

The services business also is key to preserving iPhone loyalty. Just as Amazon has used media and music offerings to increase the value of Prime membership, Apple executives view its mobile payments, music service and coming video offering as ways to encourage current iPhone owners to buy future Apple handsets.

Apple has said it aims to pass 500 million paid subscriptions across its platform by 2020, up from 360 million now.


interesting

think they can pull it off?


Can't read that article, but I get the gist of it from the lead-in.

Sure, as long as they don't forget that they only reason they have a services business is because of the iPhone. I'm not sure Apple could pull off a walled garden on someone else' platform in a world with Google and Amazon.

I know they think services will glue people to the iDevice platform, and it will to a certain extent, but if they start phoning it in the whole house of cards could collapse. Given the lackluster sales of the most recent, and hyper expensive, iPhone devices, I'm not sure Apple has thought this thing through.
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TOS
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Post by TOS »

one thing apple has going for it is a gargantuan pile of cash reserves

what i find weird is how slowly they're moving ... for instance they've been talking about producing original content for years but have made next to no progress at all on that

they could be like netflix only smart, buying up top-notch content and throwing it on itunes ... an itunes plus music type deal would be pretty awesome
"TOS ain’t havin no horserace round here. “Policies” is the coin of the realm." -- iDaemon
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