The iPhone lowers the barrier of 50% of Apple's revenue. Fewer mobile phones sold and more subscriptions are the future that awaits the Cupertino company.
Apple has spent years since it presented its first smartphone and since 2012 having it as its main source of income, making almost all efforts dedicated to the mobile part of the company. Now it is not so strong, mainly because they are not selling so many mobiles since it is difficult for them to get new users and those who have try to stay with the same phone for longer, causing that the new terminals are not sold as much.
Although Apple's overall revenue is up 1% over the previous year, iPhone revenue has been falling for a long time, and this quarter is the tipping point where the gadget that revolutionized the tech world has run out of steam.
Fewer iPhones and more service
However, it is not something that Apple did not know, since its new tendency to create payment services, such as news subscriptions and Apple TV +, and a financial company with the Apple Card mark its future as a high-priced services company. Revenues now come from that part of services and also from wearables, with some not cheap Apple Watch that are also leaders in the luxury mobile market, in addition to a Mac division and an iPad division that are being revitalized in a surprising way .
Even so, Apple is doing very well, with revenues rising albeit at a slower pace and high value-added subscriptions are expected to achieve high revenues without so much cost per user, one of the complications of the hardware sector, although it is a model of business that depends on constantly being ahead of consumer trends.
Source Apple
