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.
Apple, the leading telecom conglomerate, introduced new operating systems (OS) for its computers and smartphones on Monday, June 04, 2018. These new systems have features designed to prevent the usage of secret trackers with which users’ online activities can be monitored. This announcement by the telecom giant came amidst an increasing emphasis on protecting privacy post a data scandal that involved a leading social media platform and the implementation of new rules by the European Union (EU) for online services. Inaugurating its yearly developers’ conference, Apple appeared to be distinguishing itself from Facebook, which has gotten under the skin of privacy activists, and even demonstrated how its product could keep the social network sites from following subscribers on Apple apps and devices.
The imminent versions of software powering Mac PCs and iPhones will restrict the usage of the purported cookies from Facebook ‘like’ feature that can track individuals from one networking platform to another, stated Apple. Craig Federighi, senior VP of software engineering at Apple, told a standing-room pack with nearly 6,000 software developers at the Worldwide Developers Conference of Apple in Silicon Valley, stated that as the ‘like’ buttons and the ‘comment’ fields on Facebook can be utilized to track the subscriber, so this year Apple is shutting those down. New iOS 12 and MacOS Mojave software are to be released in the later part of this year. “They are likely to make it really harder to utilize trackers for creating unique fingerprints by collecting data about the devices in use,” stated to Federighi. “It will become intensely difficult for data companies to recognize the device and track the user,” he added.
Apple promises to feature various new technologies with its upcoming iPhone 8 model. One of these will be wireless charging. Wireless charging of these phones is expected to be functional only with the chargers made for Apple products, under the program MfI (Made for iPhone).
Putting a Technological Wall between Apple and Industry Standards Employs Greater Profit to Apple
Earlier this year, Apple joined the Wireless Power Consortium. Due to this event numerous customers expected that the company will accept standard Qi charging protocol, which will let chargers made by other companies to charge the iPhones. However, reports from Macotakara suggested that instead of standard 15 watts charging, Apple will employ charging with just 7.5 watts. The third party manufacturers will need license through the MfI program to manufacture and sell these chargers.
This wireless charging upgrade will be in motion with the iOS 11 software upgrade. With this software upgrade, these phones will be able to refuse the charge coming from any of unauthorized or unlicensed charging equipment. This means that the current chargers available in the market will not be able to charge iPhones, even though they are manufactured with the market standards. Apple has decided to separate itself from the technology of the world by putting a wall of inductive power licensed by Apple. As always, Apple has decided to earn maximum profit for itself, instead of working for greater good of following a single standard. This promotion of connected devices allows Apple to secure its market share and remain one of the prominent technology provider.
With the anticipation that the next iPhone will be a major success, the stocks of Apple Inc. rose a whole percent on Tuesday to close at US$153.99 in New York. This upsurge pushed Apple’s capitalization to about US$803 billion, making it the U.S. Company to achieve the mark. Apple’s shares have earned 33 percent this year alone, gaining from a buyback program introduced by CEO Tim Cook, for which the total was extended to US$210 billion last week, up from US$175 billion by the end of 2016.
Three New iPhones in 2017 to Mark 10-year Anniversary of the First
Apple has announced three top-of-the-line iPhone 8 handsets in 2017, which are keenly awaited by the enthusiast, who are expecting several new features after modest upgrades offers by iPhone 7. 2017 also marks a decade of iPhones, and Apple has promised a new type of screen, stainless steel body, curved glass, and best-of-its-kind camera.
Apple Watch, iCloud, and Airpod Higher Margin Services
Though iPhone continues to constitute the maximum share of revenue for the company, stiff competition is coming from other vendors including Samsung, Google, and other regional players, and the sales have dropped significantly. On the other hand, Apple Watch, iCloud, and Airpod wireless headphones have been detected as higher margin services by Tim Cook, who has sought to diversify the Cupertino, a California-based company, away from smartphones.
Apart from the growing popularity of latest technology and innovative products, Apple’s escalation is also a reflection of a relative decline of the oil industry in the recent past.