Every few years people start saying Apple is having financial problems. In 1997 Microsoft loaned Apple $150 millions they could stay in business. Experts started saying, “Apple is dead. They need to license their hardware the way IBM does.” Everyone had a solution. Then the iPhone launched, and people realized Apple is not dead or dying.
The iPhone kept everyone quiet for a few years, and Apple did more than print money. They pulled it out of thin air. Recently, Apple adjusted their quarterly forecasts for 1Q2019 from $93 – 83 billion to $84 billion. Tim Cook offered several reasons for the drop (e.g. – China and fewer iPhone sales), but it was too late. Here’s why Apple is not dead yet, and the best is yet to come.
- AppleWatch – During the last Keynote, I was more excited by the AppleWatch Series 4 than about the iPhone announcements. The new watch had fall detection, heart monitoring, larger size and a walkie talkie feature. Apple is not dead, and the watch is growing in popularity. With LTE, I can leave my iPhone XR at home and go one a run with just the watch and AirPods. It is leading the way into the wearables market, and it costs less than the iPhone.
- Services – Apple’s services are expected to grow to over $100 billion by 2023. These services directly support Apple’s hardware: iPhone, iPad, Mac and AppleWatch. iCloud costs more than competing services like Google Drive and OneDrive. iTunes and AppleMusic (50 million paid subscribers) continue to grow in popularity. Apple is not dead, and their services are leading the way.
- iPad – The iPad is Apple’s version of a touch screen Mac. The new A12X bionic processor is more powerful than most computers. People look at the iPad as laptop replacement and a complement to their desktop computers. The iPad Pro versions run programs like Photoshop and Pro Create for professional application.
- Mac – Apple is not dead, and neither is the Mac. College students use them. Professionals choose it over the PC. The iPad is great, but sometimes you need to work on a full computer. Innovation will come from cyber security, battery life and weight. The Mac Pro and iMac Pro drive the professional market and user base. Look for improvements to meet their growing needs.
- iPhone – How many companies have $84 billion in quarterly sales. Projections went down, but let’s keep this in perspective. We’ve known this day would come. The iPhone is not going away, and Apple is not dead. It will remain as a steady revenue source for Apple, but the crazy growth days will wane. Innovations will come with VR, AR and 5G (eventually). The phone will begin to serve more as a hub for HomeKit and other services.
There were several times when analysts predicted Apple’s demise. This is a pivotal point with Apple, and they need to innovate in areas such as services and wearables to stay relevant. Historical change came with the Mac, iPod, iPhone and iPad. Let’s see what’s next.
Scientifically Speaking, of course…