Among various tech-giants, Apple has always been an evolving company. It has never experimented with its product category, rather it has always focused on improving on the products it already had. They also managed to find ways for a person to buy them, even when its products became expensive. However, with current adversities of generating lower revenue, Apple might shift towards a different model altogether. One might see Apple acquiring now, which was never a go-to strategy for the company.
What are the reasons behind the change in revenue model?
Since its inception in the 1970s, Apple worked on GUI computers where others were working with DOS prompt. In the following years, Apple started manufacturing MP3 player, iPod, iPhone, and finally came up with the iPad. With all its products, Apple did manage to generate a whopping revenue all these years. The shift to Chinese market and longer shelf life for iPhones resulted in 15% dip in the company’s revenue.
In this scenario, Apple is likely to look forward to advanced technologies such as artificial intelligence and AR/VR driverless cars. There are high chances that Apple will make acquisitions to improve its financial position. This is clear from Eddie Cue’s interview, a senior vice president in the company. He revealed that acquisition might take place in the content area. He indicated that Apple TV would be associated with the content production companies. Disney and Netflix were great partners for Apple TV, but there is no commitment in place as of now, he added. Apple TV has not gained much traction as compared to its other devices, but service revenue has certainly boosted.