Apple is looking for a new revenue model after the iPhone is no longer sold

by Jorge Quinteros

Apple has built a solid position in the smartphone market by the iPhone and is selling a lot of revenue by the sales of the iPhone. Meanwhile, Apple does not seem to rely on the iPhone forever, and it is reported that "Apple is already looking for a profit model after iPhone is not sold".

Apple's Executive Shake-Up Readies Company for Life After iPhone - WSJ
https://www.wsj.com/articles/apple-executive-shake-up-readies-it-for-life-after-iphone-11550503767

Apple could be looking for its next big revenue model | TechCrunch
https://techcrunch.com/2019/02/18/apple-could-be-looking-for-its-next-big-revenue-model/

In the first quarter of 2019, Apple announced that "Sales of iPhone has decreased by 15%", and revenues were lower than the same period of the previous year.

iPhone sales down 15%, Apple announced first quarter results in 2019 - GIGAZINE

The reason why the iPhone struggled hard was not only that sales of inexpensive smartphones increased in the Chinese market, the Chinese economy stagnated, and users simply came to use one iPhone for a long time I will. Also, the iPhone's price exceeding $ 1,000 (about 110,000 yen) may also be considered as reason for sluggish sales.

Now that the iPhone is struggling hard, Apple was reported to be exploring the profit model after iPhone is no longer sold. The next thing Apple is looking at is likely to be a "service business".

by PhotoMIX Ltd.

Even in the first quarter of 2019, where iPhone is still the pillar of earnings, Apple also reported that the service business, such as subscription, grew significantly. Sales of service business including digital content such as iCloud and Apple Music reached 109.9 billion dollars (about 1 trillion 200 billion yen), which achieved 19% growth compared with the same period last year.

The figure of 10.9 billion occupies a small percentage of the $ 84.3 billion (about 9.2 trillion yen), which is the revenue for the first quarter of 2019. According to Morgan Stanley analysts, we anticipate that by 2023 sales of service business will exceed 100 billion dollars (about 11 trillion yen) annually.

Apple plans to deploy a variety of subscription services and is reportedly planning game distribution services like "game Netflix" and paid subscription services like "magazine version Netflix".

Apple reports that it plans its own game distribution service like "game Netflix" - GIGAZINE

Apple announces paid subscription service of news "Netflix magazine version" at the event held in March 2019 - GIGAZINE

Also, Apple has greatly combined devices and services, such as deploying iTunes in the music store after selling the portable music playback player's iPod in the past, or launching the app store in the app store after selling the smartphone's iPhone We have included. The revenue model to replace the iPhone is being rumored to be a combination of new devices and services, and it is being used in the next generation of various fields such as AR, VR, automatic driving car, artificial intelligence etc. A revenue model may be born.

by hurk