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Apple's new business model does not depend on iPhone sales



January 31, 2019, 03:55
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Updated on January 31, 2019 at 16:15

Apple this week gave the worst results of Christmas season for ten years.

In the last quarter of 2018, between October and December, iPhones revenue fell 15% last year.

The benefits achieved by the company through smartphones have been reduced for the first time in January 2007.

And for a long time, cell phones Apple put golden eggs on the goose.

Over the years, in Cupertino, California, the company has sold more than one million units called "Jesus' phone".

IPhon became the most valued company in the world and was the first public company in the United States. In August 2018, for a value of $ 1 million.

But its flagship product sales have slowed down the company's not only to reduce its mobile phone prices – not all customers want to spend $ 1,000 on their new phone but also their business model once again.

Beyond the iPhone

The descent was not unexpected.

Additionally, Apple earlier warned investors that it was dead, "the slowdown of the slow economy, especially China", could not be predicted, in the words of Tim Cook's executive director.

Sales of IPhone have fallen ... but Apple's bad news is not all. Photo: GETTY IMAGES

Sales of IPhone have fallen … but Apple's bad news is not all. Photo: GETTY IMAGES

But Cook also said that business management is a long-term business because "the business's strength is deep and wide."

There was no random comment.

"Investors (Apple) set off iPhone sales," said Dave Lee, BBC's North American technology correspondent.

"This bad news was offset, and perhaps it was revoked, good news about services," says Lee.

In fact, income generated by services increased (19%), than in the previous year. Gross margin stood at 62.8%.

The company's service sector has many areas, such as cloud storage, iCloud, such as applications like Apple Music and iTunes, online music or Apple Pay Payment system, for iPhone purchases. Similar to contact card payments.

In fact, Apple Pay had 1.8 million operations based on Apple's results, double the same period last year. For ICloud, revenue increased by more than 40%.

Apple Pay allows you to make payments to your mobile phone contacts. Photo: JUSTIN SULLIVAN / GETTY IMAGES

Apple Pay allows you to make payments to your mobile phone contacts. Photo: JUSTIN SULLIVAN / GETTY IMAGES

In addition to the services, Apple gains money with other products (in addition to iPhones), such as iPad tablets and famous Mac computers. Cook said these two devices had a special confidence on Tuesday.

Additionally, it sells Airpods (headphones), speakers, TVs (Apple TV), iWatch smart watches and all types of accessories for your electronic devices.

"New clothing segment [aparatos y dispositivos electrónicos que se incorporan en alguna parte de nuestro cuerpo] and other applications have become the main avenues for Apple's growth, "he reads a report released on Wednesday in the AppleSphere platform aimed at tech company fans.

Specifically, in China, revenue from the use of technology in Asian countries has increased by more than 50%, according to the results of the last quarter.

"Streaming"

"Apple is gradually making a transition to another type of company that is undergoing hardware," said Lee.

"$ 245 billion (as shown in the results), can bring your home to the window and bring your buyers to a larger purchase or two other entertainment areas."

One of these options could be to immerse yourself in the world of its transmission, Netflix's market. In fact, the iPhone-created company recently announced that it will co-produce its first feature film.

Apple recently said it wants to compete with Netflix. Photo: GETTY IMAGES

Apple recently said it wants to compete with Netflix. Photo: GETTY IMAGES

But there is more.

The company will soon complete – some 2019 budget quarters – a platform for viewing videos: Apple Video.

The company has signed contracts with actors, directors and artists to create exclusive content. The idea is to overcome this hole through this win-win business with iPhones sales.

Morgan Stanley, a US investment fund company, expects Apple Video to generate profits of $ 500 million and US $ 4,400 up to 2025.


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