“Apple is in a good position with its iPhone 7 now but eventually it must rely less on iPhones,” Scott Gamm reports for TheStreet. “‘”They need to eventually come out with something outside of the iPhone,’ said Angelo Zino, an equity analyst at CFRA Research. ‘But when we look at the company today and over the next two years, we continue to think they are well positioned with the current iPhone 7 launch as well as the next generation device amid the 10-year anniversary of the iPhone next year.”‘
“Zino said services, such as Apple Music and its App Store, will help the technology giant diversify its revenue streams,” Gamm reports. “‘The problem is that services only represent about 13% of their revenue, but it’s growing pretty quickly,’ Zino said.”
Gamm reports, “In a note Tuesday, TheStreet‘s Jim Cramer, whose Action Alerts PLUS portfolio includes Apple, and co-manager Jack Mohr said they were ‘encouraged'” by the ‘explosive growth’ in Services.”
Read more in the full article here.
MacDailyNews Take: Apple must do this. Apple needs to to that. How did Apple ever survive without the assured prescience of analysts like Angelo Zino with his 40% success rate (read: 60% failure rate) and -17.9% average return per recommendation?
iPhone now is only 46% of revenues. If Apple had not discarded the Mac and not suffered a massive loss of revenue as a result, their numbers would have been more respectable.
The ipad cannot replace a Mac except for the most trivial applications. Everything in iOS is inferior to its nac equivalent: even selecting text, which is clumsy at best using a finger instead of a trackpad, but while I can select exactly what I want on a Mac, in IOS Apple decides when it thinks I want a whole paragraph.
Mac users are the evangelists and there hasn’t been much evangelising these past few years.
I know I’ll get panned for this but I agree. Maybe I’m just old (my first computer use was on a ][+ playing “Oregon Trail” in elementary school) but I had to use an iPad last week while on vacation in the Caribbean. My 13″ MBP wouldn’t fit in the hotel safe so I only brought my iPad Air. I managed to get some work done throughout the week but it was brutal and took way more time than if I had my MBP.
I guess I’m not adept enough to manage it without much practice but I’m going to get a smaller MacBook (or whatever is unveiled tomorrow) before my next trip.
One can only imagine how well things would be today if Tim Cook did not make the conscious decision to abandon the Mac for the past several years.
How many billions does Tim Cook need in the bank to be able to handle taking care of the Mac? Hmmm?
Apple shouldn’t worry about revenue. They should focus on making insanely great products, the revenue will sort itself out once that goal is achieved.
correct…The Steve-O’s credo.
We’ll see what happens tomorrow eh?
Some predictions:
Mac Pro will be ignored, as will the Mini.
MacBook Pro will get thinner and a bit faster, and that dumb magic strip thing that nobody will use. Battery life will go up by 2 whole hours. How revolutionary.
iMac will get a speed bump and stay with the same 12 year old design.
iCloud *may* get some paltry update.
Pro users are already salivating over the new 28″ surface desktop from M$, while Cook spends the bulk of his time servicing communist Chinese officials and rappers. Once M$ seizes mindshare of creatives away from Apple the Mac’s market share and revenue will nosedive.
Apple is working tightly with IBM with iOS and the Mac but this will NOT translate into serious enterprise penetration as Apple still does not have a true business unit with proper 24/7 support and software developers willing to rewrite long established apps for the 5 companies that want more Macs.
I’m hoping to be wrong.
Apple should (@ this point) copy M$…. Let M$ take on the up front R&D costs for this over priced Windoze slate. Why can’t you rotate the M$ Studio screen 90 degrees either way @ any angle? AAPL will figure it out. Take what you need Apple and show them how its done. It just doesn’t matter any way. Apple is here to stay. They have $240 billion reasons to stick around 😉
Possibly a Viewsonic patent?
Tomorrow is probably a MacBook days. Desktops will come soon in a separate release event. Al least that is what I have read.
Again, a talking head that simply does not get it!
The iPhone will be 10 years old next year, still sells for any amazingly consistent ASP of over $600, is far ahead of the competition, is evolving every year to bring more and more capability to a wide array of use cases, is totally dominant in the high end smartphone space, is part of an array of devices that all work seamlessly together ….
10’s of millions of users are upgrading or moving to iPhone every month, so it is a “problem” that any other company would die for!!
So give everyone a break, including that ridiculous UBS anal…yst Steve Milosovich!
How can analysts gripe about the relative dominance of iPhone revenue, cry for more ecosystem revenue, and fail to understand the linkage between the two?!
The larger number of iOS devices in use worldwide translates to increased services revenue. It is not an either/or problem. Besides, any company on Earth would love to own that iPhone “problem.”
Apple has only one real problem: leadership…similar to America’s “real problem.”
And you are certainly not the solution to that problem, botty!
Melvin, you know how your acerbic, biting wit devastates me. Fortunately, MDN provides on-site counseling to allay my grief-stricken malaise, this is my new theme song:
“At first I was afraid, I was petrified
Kept thinking I could never live without you by my side
But then I spent so many nights thinking how you did me wrong
And I grew strong
And I learned how to get along
I will survive, Melvin.”
Apple should diversify into 4 categores:
1) Apple Cars
2) Apple Trains
3) Apple Planes
4) Other
I should have been an Analyst. I’m getting pretty good at this.
Apple kitchen appliances