“With Apple set to report second quarter earnings on Tuesday, observers will be watching for two big trends: How far will hardware sales fall? How much will growth in services close that gap?,” Chris O’Brien reports for VentureBeat.
“Ben Thompson lays out in a lengthy post over at his Stratechery blog, Apple is hoping to transition away from hardware-driven growth to service-driven growth. He has a detailed explanation of the hows and whys of that and the challenges Apple faces,” O’Brien reports. “But in general, the trick for Apple is to get the people who already own its products to use more, and spend more on, services.”
“In a new report, Verto Analytics takes a stab at measuring that user base and giving some insight into just what it looks like,” O’Brien reports. “Apple has 124.4 million users in the U.S. who accessed at least one of Apple’s online services (web or Apps) at least once last March. That means Apple reaches more than half of all adults.”
Read more in the full article here.
MacDailyNews Take: Apple’s services business is primed to become ever more important and is, generally, where Apple shines. We expect the company to focus even more on the quality of their services going forward.
Apple’s services business saw massive 60% profit margins in 2015, more growth expected – April 20, 2016
Credit Suisse: Apple’s underappreciated services business could be growth engine – April 4, 2016
Apple highlights services in search of Wall Street’s love – January 26, 2016
Apple reaps $18.4 billion quarterly profit, the largest ever recorded by a single public corporation – January 26, 2016
Apple beats on earnings; sets all-time records for revenue, net income, and EPS – January 26, 2016
MacDailyNews presents live notes from Apple’s Q116 Conference Call – January 26, 2016
Apple beats Street with all-time record quarterly earnings – January 26, 2016
Thats huge compared to what is was back in the old days. Before SJ came back.