“Robert W. Baird is more optimistic that Apple will be able to increase its sales and profits from services after a big survey of consumers,” Tae Kim reports for Barron’s.
“The firm’s analyst William Power reaffirmed his Outperform rating for Apple stock, citing positive data from a recent survey of 1,500 U.S. consumers,” Kim reports. “The analyst noted 67% of consumers said they plan to purchase an iPhone versus around 60% in the past two surveys.”
Kim reports, “He predicts Apple’s services segment will generate 21% of the company’s sales and 37% of its profits in 2020, versus 19% and 33% this year, respectively.”
Read more in the full article here.
MacDailyNews Take: Will Power!
In the spirit of horrifically dated references, as The Fonz would say, “Exactamundo.”
Again, units don’t matter. There are only so many quality users on the planet. Keeping them happy, as every measure of customer satisfaction shows Apple has amazingly well done to date, is what matters. As long as the users buy apps on the App Store, subscribe to Apple Music, add iCloud storage, use Apple Pay, etc., they can replace their hardware with Apple hardware at their own pace.
iPhone has higher customer satisfaction than Android, meaning that Apple gains iPhone users from Android via normal churn as users graduate to real iPhones. — MacDailyNews, January 21, 2019
Yes, the iPhone replacement cycle is lengthening, but with so many iPhone (and iPad) users and with customer satisfaction so high, it really doesn’t matter. The market is mature and there are only so many quality users on the planet. Apple has that market cornered. The types of people who’ve settled for Android aren’t likely to buy as many apps or subscribe to services. They want free. They’re not worth much after the sale. The iPhone knockoff peddlers like Samsung can have them.
This is, of course, Apple’s point with ceasing the reporting of unit sales. It’s the user base, the quality of the user base, and services that matter more now. That’s where the growth is and where it will be for many, many years to come. — MacDailyNews, January 5, 2019