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Wall Street takes a bite out of Apple and their Services

(BUSINESS NEWS) As Apple continues to hang their potential earnings on Apple Services, the company also has to figure out how to get around the hardware shaped elephant in the room.

cook apple ceo tax cuts services

The rumor mill

Tech giant Apple (AAPL) has to contend with the rumor mill about the iPhone 8/7s/7s+ etc., slowing down hardware sales as most of us debate an upgrade date around the iPhone’s release date.

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For Apple, this means that hardware sales aren’t going to be the number one brag point.

Apple services

Investors, shareholders, and market analysts will likely be served up Apple’s newest favorite metric – Services. Things like Apple Music, the App Store, AppleCare, Apple Pay, and licensing, will hopefully wet the market and generate some excitement around the inevitable fall keynote finalizing the release of the next iPhone. With good reason – behind the iPhone,

Services is generating a bulk of Apple’s revenue and this is only likely to continue.

Services has a 22% increase since last year alone.

For the 3rd Quarter 2017, Apple announced a revenue of 45.4 billion, a steady increase going up. Over 7 billion of that comes from services alone, the largest revenue category outside of the iPhone. Check out the summary here.

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Expansion not invention

For consumers, this means that Apple will continue to focus on the curation and expansion of it’s content collection to offer as services that will enhance the mobile experience for iPhone and iPad users. This serves to not only help get us excited, but to help keep retention on Apple devices as we enjoy access to a larger and larger content library.

Because services is outpacing both iPad and Mac, we may see a transition into Apple creating more of its own content.

This is further reflected the decision to hire Jamie Elricht and Zack Van Amburg of Sony Pictures – both extremely successful television executives. Given Apple’s commitment to high quality and innovation, this could be a great thing for consumers and investors.

Possibilities galore

Wall Street is anticipating a strong growth of 44.89 billion in revenue, and Apple’s stock hasn’t slowed with a cash hoard big enough to buy Wal-Mart or AT&T outright.

Wall Street will most definitely be keeping an eye on Apple, because who knows what new services will come with the new iPhone. Stay tuned.

#AAPL

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Kam has a Master's degree in Industrial/Organizational Psychology, and is an HR professional. Obsessed with food, but writing about virtually anything, he has a passion for LGBT issues, business, technology, and cats.

2 Comments

2 Comments

  1. Glen

    August 3, 2017 at 10:58 am

    With all of Samsungs leaps in technology and the performance of the Galaxy phones, it’s going to be difficult for apple not to lose more market share.

  2. Pingback: Apple loses money on repairs, critics cry foul on the entire process

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