A new era for Apple
Recent financial reports have shown that iPhone sales might no longer be the main source of revenue for Apple. In fact, the Wall Street Journal reveals that the American company is already prepared for a post-iPhone era. Apple is already trying to reduce its dependence on smartphones.
One of the company’s ultimate goal is to bring in $50 billion in revenue from the broader services sector. In the last quarter, Apple took in $10.75 billion from services like Apple Pay, AppleCare, App Store, iTunes, and Apple Music.
Morgan Stanley’s estimate is that services will produce 60% of Apple’s total revenue within the next 5 years. In the previous five years, smartphones accounted for 85% of the company’s revenue.
Apple is working on a subscription news service and this is part of the company’s plan to focus on growth in the services sector. According to the leaks, Apple News will cost around 10 USD per month. At the moment, Apple has a total of 360 million active subscriptions and their goal is to reach 500 million by 2020.
The company’s 2018 research and development spending on new products increased 23% to $14.24 billion. Recent reports show Apple’s next major hardware product will be an augmented reality (AR) headset, something similar to Google Glass. People are already waiting on a product in this category that could make an appearance around 2020-2021 or so, while analysts believe Apple’s AR mask will be even more popular than the iPhone.
Author: PC-GR
The World of Technology
