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Humbly disagree with this whole argument. Bloomberg got this one right: > Apple’s new revenue strategy isn’t a bad one. It’s, basically, sell the customer an i
by Eric_WVGG 7y ago
Humbly disagree with this whole argument. Bloomberg got this one right:
> Apple’s new revenue strategy isn’t a bad one. It’s, basically, sell the customer an iPhone every three to five years, and make a bunch of money in the years between by selling them a new Apple Watch or AirPods (which only last about three years tops before you need a new pair -- batteries!) and services. If a user subscribes to all of Apple’s services for two years straight, that’s about equal to revenue from a new iPhone. So in those cases, if that user doesn’t buy a new iPhone for a couple years, it’s not a big deal.
Really, what seems more likely: services like AppleTV will bust out and become bigger than Netflix (smaller than AirPods), or in five years they'll follow up iPad, Apple Watch, and AirPods with another hit piece of hardware?
- jrs95 7y agoYeah, the basic strategy seems to be increasing the average value of a customer that buys an iPhone. Some of that is similar to what they've done in the past with software integration between their hardware products (AirPods, Watch), and now they're expanding into services probably because those are simply easier and more cost effective to build than new hardware products. It's also easier to get people to pay for a monthly software subscription than it is to buy hardware (even with 0% APR on credit)