Apple Services
Is Apple going to generate money from its announced Services?
This week Apple held an event in their campus announcing a suite of services. According to Tim Cook, services will represent a bigger portion of their revenue, and therefor Wall Street should focus on that instead of iPhone numbers. He has announced a few times that Services is where growth is headed for Apple. Apple’s announcement shows that it is extremely committed to it. But are the announced services going to be meaningful to its business?
Wall Street reacted poorly when Apple announced that it was going to stop reporting the number of iPhones sold. That is no surprise, given that most of Apple’s revenue comes from its phones. There is a slow down in that part of the business, because they are running out of people that they can sell its phones.
Tim Cook increased the amount of money that Apple makes from its phones by increasing its ASP and also by selling it at different price points. The strategy paid off. Shares for Apple…
