See the post above yours that I quoted.
The Apple watch is morphing from a fitness device for hipsters to a medical device that can help save lives. The consumer market for medical technology is wide open and ripe for significant growth.
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Apple Reportedly Plans to Cut Price of iPhone XR in Japan Due to Poor Sales and Restart iPhone X Production
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The Apple watch is morphing from a fitness device for hipsters to a medical device that can help save lives. The consumer market for medical technology is wide open and ripe for significant growth.
So services, maybe. Heavily tied to the iPhone though, a huge chunk of that services revenue has to be coming from Google paying to be the default search engine for the phone.
Watch, AirPods etc, which are practically iPhone accessories, account for a tenth of the revenue of the iPhone.
This is why investors are so jumpy at any suggestion that the iPhone isn't as popular as it once was. If that phone revenue takes any significant hit it's unlikely that products and services heavily tied to the phone will make up that lost revenue.
Thats an entirely fair point of view in my opinion.
Ok so just over 59% of revenue for Fiscal 2018 with another 15.8% coming from services and 6.7% from other products like the Watch and AirPods that are pretty much iPhone accessories at the moment.
The last line I agree with, Apple should be judged on the same basis as its competitors.
If any of Apples competitors have got about 75% of their revenue tied to one product or service that seems to experiencing slowing demand I wouldn't be expecting huge growth.
Yeah maybe. We'll see how that pans out. Still tied to the iPhone isn't it.
Yes, still tied to the iPhone... for now. I can certainly see Apple adjusting things to allow it to work with an iPad... even the budget-friendly 2018 iPad type of device.
I have no dog in this fight. I'm not a stockholder... just a customer. I'm not a fan of the direction they're going in so I'm a "sunset" customer who has purchased many Apple products in the past and still uses them, but won't be buying any more of them.
The iphone has been a major contributor off apple revenue, since before Timmy took the helm. Investors have always been jittery (this didn't start with Timmy), but the price of shares for the last 7 years has been going up.
Apple is and has been cognizant of the percent of revenue from iphones and probably they have analyzed and determined how to mitigate the risk. They want services that are independent of hardware yet will integrate well with their own hardware.
Apple has 1.3 Billion active devices worldwide.
There is nothing to show that number is getting smaller. Don't forget those are highly profitable customers who actually pay for services. It's definitely going to fuel Apple's Services revenue.
Apple is continuing to introduce new products into the pipeline and refining them, like the Apple Watch.
The revenue story is going to be a long term story that is not affected be seasonality (like iPhone sales are). It might take a few quarters for Wall Street to adjust though.
Do they? Other than the token gesture of the Android Apple Music app I haven't really seem anything that suggests this.
For instance if I use Spotify I can use it on my iPhone , on my wifes iPad, on my Mac, on my Amazon Fire TV, on my sons PS4. Its a truly cross platform service. If I subscribe to Apple Music i'm ok on the iPhone, Mac and iPad but forget streaming via my TV unless I buy an Apple TV.
The upcoming TV service, will that be available on Roku? Fire TV? Chromecast? I very much doubt it., reports like this certainly suggest not.
How much traction would Netflix have got with their content if it was tied to their own hardware and their hardware was extremely expensive relative to competing products? My guess is not much.
I just don't think Apple is very good at services. I think they see services as a way of selling the hardware. They don't see them like a Netflix or a Spotify does.
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Ok we'll see. As above i'm not super convinced about their services. The watch has a lot of potential particularly as a medical device but Apple has got to tread carefully in that market. Cost is likely to be a major factor.
As an annual upgrades myself - I will definitely be holding on to my XS thru 2019. I was able to get the $750 off deal when my son purchased an XS Max on my account.
The XS costs me $9.86 a month after trading in his 7 plus and putting the trade in value towards my phone to reduce the pricing vs applying to my account balance that was zero.
I will probably still upgrade my AW every other year as well.
iPhones have reached my limited on what I’m willing to spending yearly even with zero down financing Verizon has
Do you need an iPhone or Mac to use Apple Music? iTunes on windows works. Same for the upcoming streaming service. Whether or not these services are available on a fire stick is not the question I was posing.
Just about.
If they don't make the services available beyond their hardware they will get limited traction, that is the point.
How good is their TV content going to have to be if you have to buy an Apple TV unless you want to watch it on your phone?
Not requiring Apple hardware and working to YOUR satisfaction are two different things. I was only pointing out the former.
I just refuse to ever buy it. The reason any company offers these warranties is to increase their profits because more people who bought the warranty will never use it then those who will. Apple has enough of my money.
That many?
Even if people upgrade less often, like say I am planning to do maybe next year or in 2020 that still is a steady source of revenue no? If most current customers stick with Apple that is.
That was in January, so it's probably a little more now.That many?
https://www.macrumors.com/2018/02/01/apple-now-has-1-3-billion-active-devices-worldwide/
I am currently using Apple Music on Android as I get it free for 6 months from EE. It is inferior in several ways to Spotify, which I have suspended. Notably does not have gapless playback.
Maybe it's different on Android, but for me Apple Music will playback without a gap on albums that are mixed that way, like a live concert. I haven't tried gapless playback on other types of music though.
Hmm I have to try that, mind you with iTunes music (I mean purchased from the store or ripped from CD) you can make it gapless playback.
Which is why it's omission on Android app is unacceptable. I don't know what they hope to achieve by this. Or is it just sloppy programming? Breaks in live albums applause etc are not an issue but it spoils albums like Dark Side of the Moon, and probably 50% of prog albums.
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Apples services are awful everywhere apart from Apples hardware. They aren't interested in the slightest in your experience on Android being any good they just want you to buy an iPhone.
As I said they see services as an add on to their hardware.
Here is another number: Apple Music has 50 million subscribers. Very few iDevice owners can afford Apple services or simply prefer the alternatives.
Let’s look at this for a minute. Apple made 68 Billion in net profit from 229 Billion in revenue last year and gave a significant portion of it back to thier shareholders. Cook earned his pay. The 700 Million was not his salary was his network which is closer to 900 Million now. The next closest in net profit was Facebook at 15 Billion and Google at 12 Billion. Amazon only made 3 Billion in Profit on 177 Billion in sales while controlling 49% of online sales.
Facebooks founder is worth 49 Billion, Amazon’s is worth 120 Billion, Steve Jobs wife & family total 20 Billion even though Apple is the highest value by market and most profitable by far.
The comments that Apple is greedy are disingenuous as their prices are on par with competitors offering products similar in quality. It would take Amazon 33 years at their current net profit level to match the 100 Billion Apple is using to buy back stock.
I'm not sure what the rest of the point in your comment is about CEO net worths...
But this above is factually untrue.
Apple's current product offerings are several percentage points more expensive accross their entire lineup than their competitors, or other options that are parity to them.
in the Phone space: None of their competitors flagship offerings start at $999. Their closest competitor in this space, Samsung with the S9, starts $300 cheaper. it's only the super niche "note" line that comes close to Apple's current iPhone Xs lineup.
Their Computer products are priced very high in comparison to other PC offerings. And their upgrades for devices that can get a BTO option are ridiculously high. often 2-4x the price of similar upgrades through retail channels.
their accessories are often considered very expensive. The Airpods, HomePod, Apple TV, even the watch are all far more expensive than their competitors products in these spaces.
Now, don't take this comment to mean anything about quality / ecosystem and whether or not there's value to be found in these higher prices. Thats up to each of us to determine ourselves.
But to believe that Apple's current pricing is "in line" with the industries it's competiting is indicates you really haven't looked very hard outside of the Apple space to see what the rest of the industries are actually offering.
Apple is extremely highly priced right now. People liken it to the 90's when Apple was also extremely high priced. it's called "the Apple Tax" for a reason.
Here's another number: Spotify paid subscriptions are increasing at a monthly rate of 2%, while Apple's growth rate is 5%.
The Apple Music 50 Million subscribers number is from April, so it's likely higher by now.