Apple’s new direction according to the company’s CEO, Tim Cook is the addition of services such as Smartwatches, Music and video streaming, News and weather and so much more. It’s as if Apple suddenly wants to be the next Google without the search engine ambition. Although the company said it will still sell it’s iconic products such as the iPhones, Macs and the AirPods, services are the major focus now
So it’s new collection of services such as the Apple TV Plus, the Apple Arcade and Apple News Plus are all subscription based services that users pay for to enjoy an amazing digital experience. The company is even going as far as creating it’s own credit card called the Apple Card with cash back for people who buy products directly from the company.
“For decades, Apple’s been creating world-class hardware and world-class software,” Cook said. Now it’s going to tackle streaming and gaming services too. “It’s unlike anything that’s been done before.”
One amazing thing is bringing in of Oprah Winfrey on stage to talk up her planned documentaries and programs for Apple. As this might become overwhelming, Investors in the company are “cautiously optimistic” which pushed Apple’s share up more than 8% since the Last March’s announcement.
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“Video streaming is not going to save shares of [Apple] if the iPhone market declines,” Chatham Road Partners analyst Colin Gillis said in March. “Apple remains the iPhone company.”
By Tuesday, the company will be announcing it’s second quarter eanrings which will enable us see more of what the future will look like for the Cupertino based company. And since Apple no longer report on how many iPhones, Macs or iPads it sold, the addition of new services which could be a newer focal point for the company might be really good way of even easing off the pressure from the company based on it’s diversified products in the market.
While we do not know how great the Apple services are doing so far so good, the Apple News Plus which was launched in Marched and goes for $9.99 per month is the only service it’s made available to the public so far which is even estimated to have had about 200,000 subscribers just in it’s first two days of launch.
Although one might start comparing that with news based companies such as the Wall Street Journal or even the New York Times and their numerous subscribers but after all, this is just the starting point for Apple and they could be integrating the news in a more strategic way into their iPhone and other hardware products as they roll out newer versions later on this year.
We also hope the Qualcomm battle and court settlement which included a payment from Apple to Qualcomm and Apple being “forced” to start using the Qualcomm chips on it’s products might all have some financial impact on the company’s profiting according to some industry analysts.
“Investors still don’t fully appreciate the strength of Apple’s platform,” Morgan Stanley analyst Katy Huberty wrote in a recent message to investors.
Considering the how competitive the mobile had become and even the Android community now growing exponentially, it might be a difficult time for the iPhone lines especially with how pricey they are. Compared to smartphones like Oppo or OnePlus that usually include powerful features yet with much affordable price tag, all these could be part of what motivates the company into adding up more services into it’s sales portfolio.