“Apple is continuing to race ahead prior to its September 9 press event, where it’s expected to launch bigger versions of the iPhone and tease the iWatch,” Dana Blankenhorn writes for Seeking Alpha. “But shareholders should be focused on a different question, which is whether Apple can make it as a services company?”
“At some point, as markets saturate, Apple has to make this transition, and it’s clear the company has yet to do so. Results from iTunes music and app sales remain a tiny part of the whole,” Blankenhorn writes. “Most of the headlines regarding its cloud services, like relating to celebrity nudes, remain negative.”
“Apple is becoming a Michael Kors of mobility, the winner in the high-end segment but nowhere in the mass market,” Blankenhorn writes. “At some point that impacts developers’ willingness to divert resources to the platform. Where is the tipping point? And when does Apple service revenue become more than a pimple on the elephant?”
Read more in the full article here.
MacDailyNews Take: Give us a ring, Dana, when Michael Kors hits 42% U.S. market share. Apple’s iPhone currently owns 42% of the U.S. market and that figure is growing and will only accelerate with the launch of Apple’s next-gen iPhones.