Apple Looking to Push Other Services to Offset iPhone Slump

It's always been about creating an ecosystem that's so sticky that users wouldn't want to leave. India's policy on single brand retail makes it tough for Apple Stores to be set up in the country.

Apple and Qualcomm have announced that they ended their legal battle last week, after the two companies reached an undisclosed settlement. These numbers are a noticeable dip year-over-year and saw Apple giving a lot more attention to the services division making an all-time high revenue of $11.5 billion for the company.

Apple had a challenging first quarter, with iPhone shipments dropping by a "staggering" 30.2 per cent from a year earlier to 36.4 million units, IDC reported. Last month, Apple revealed a new credit card offering and subscription services for news, television and gaming, though only the news subscription is now available to purchase. It's hardly earth-shattering stuff, but this is Apple. Whereas its domestic adaptability in China further scaled sales leading to 7.0 points increase in the previous quarter. Now it's pulling all the levers.

Apple also cited strong showings in its revamped trade-in and financing programs, per Ars Technica, with the company claiming "four times the trade-in volume than it did in March 2018" after it rolled out new programs in the U.S., Spain, Italy, the UK, China, and Australia. The results have been striking. Apple is still experimenting with its approach in different markets, but the company is now motivated to learn, when it wasn't before.

When it comes to Apple's current phone lineup, the iPhone XS and XS Max get most of the attention thanks to features like dual cameras, more luxurious designs and vivid OLED screens. "And so, we plan on going in there with sort of all of our might", said Cook. "It's really all over the place", Cook said.

So could new, cheaper handsets be the answer in getting Apple's handset business back on track?

"I don't think the phones are the answer".

Apple must surely price-protect distributors when it reduces its prices, but this will, as Canalys said, add to the complexity of their dealings with the shiny one. "As that continues to happen, with the more profitable margins in that business, that could ultimately impact the valuation on Apple". Apple has stopped reporting iPhone unit sales.

It didn't help Cook & Co that Apple had a good Q1 a year ago when demand for the iPhone X was flying. If you develop an iOS app and don't buy your keywords out, your competitors will-and you'll lose sales. "It has potentially a billion people it can sell services to".

Apple's iPhone revenue has declined for another quarter according to the company's latest earnings, and it means income is being dented.

Services has been a focus area for Apple for a while. It's a long term play.

  • Salvatore Jensen


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