Skip to navigationSkip to content
Close
Apple Has a Plan B as iPhone Demand Peaks; Many Suppliers Don't

Apple Has a Plan B as iPhone Demand Peaks; Many Suppliers Don't

Read more on Bloomberg

Contributions

  • Software is eating the world and this quote helps back that ups: “The Apple investment paradigm is moving away from a focus on device sales toward a more predictable services-driven business.” Apple as a company is not afraid to take risks. They sometimes release products that fail, but when they succeed

    Software is eating the world and this quote helps back that ups: “The Apple investment paradigm is moving away from a focus on device sales toward a more predictable services-driven business.” Apple as a company is not afraid to take risks. They sometimes release products that fail, but when they succeed, they achieve at massive scale. I'm still keen on what new use cases will be presented by future versions of the Airpods.

  • I’m generally skeptical of the narrative that Apple is eagerly becoming a “services” company — you can see they’re just not into their services the same way they’re into their hardware products and software platforms. But it’s true that its services business, which generates revenue on old devices and

    I’m generally skeptical of the narrative that Apple is eagerly becoming a “services” company — you can see they’re just not into their services the same way they’re into their hardware products and software platforms. But it’s true that its services business, which generates revenue on old devices and new, offers a nice buffer — and even a decent growth engine — that Apple’s suppliers simply don’t have. Such is life in the Apple components world — a stressful but potentially lucrative place to be, dating back to Tim Cook’s mastery of the iPod supply chain more than a decade ago.

  • Apple's market cap has dropped $190 billion in around five weeks and it lost its $1 trillion valuation on Monday. It has been 10 years since the iPhone launched and this year was the first time we faced flat growth in the smartphone market. Now it is obvious that smartphones are not leading innovation

    Apple's market cap has dropped $190 billion in around five weeks and it lost its $1 trillion valuation on Monday. It has been 10 years since the iPhone launched and this year was the first time we faced flat growth in the smartphone market. Now it is obvious that smartphones are not leading innovation anymore and everyone is looking for what’s next.

  • Basic economics: demand is not some kind of fixed characteristic of the market. iPhone prices have increased dramatically while features have only improved marginally. Apple is choking off demand for its own products.

  • The move to stop reporting unit sales is so telling here. Apple, understandably, wants to shift the narrative away from how many units are sold to how much revenue overall is generated through those units. I feel like it started with the Upgrade Program, where device owners became subscribers and a steady

    The move to stop reporting unit sales is so telling here. Apple, understandably, wants to shift the narrative away from how many units are sold to how much revenue overall is generated through those units. I feel like it started with the Upgrade Program, where device owners became subscribers and a steady, recurring flow of cash.

  • Key thing with any company is long-term growth and Apple nailed it with adding services that surround the product. Companies can learn from this approach and look for services around their products that could be long-term income streams.

  • Interested to see what the value of all Apple’s services businesses equate to? iTunes, App Store, Apple care etc.. will be worth a lot with all that recurring revenue

  • As much as I don’t appreciate larger enterprises squeezing manufacturers and supply side vendors, the way Apple is approaching it’s current situation is smart. Should be interesting to see if these suppliers either somehow evolve their businesses to the changing dynamic or risk going out of business.

  • Apple pushed pricing beyond sustainability. Maybe it works short term for profitability, but it’s a long term mistake since it will rely on fewer customers willing & able to afford their products and a small shift from them away could cause drastic financial fallout.

  • The Apple narrative will change after Wall Street adjusts to life without unit sales data, recurring services is their future. Unfortunately component manufacturers won’t be so lucky.