Apple: The world’s largest public company. Notice what I did not say here: I did not classify Apple as a technology company, because it She’s not the one and definitely doesn’t want to be. With the main event in March 2019, Apple has made it clear that it sets the course A new future, one follows in the footsteps of Disney, Netflix, and especially, Amazon. In this video, we’ll see how Apple plans to break its history as a device The seller is switching to a digital services company. This video was brought to you by Skillshare, where you can watch my chapters on how The stock market works. In January 2019, Apple CEO Tim Cook sent a letter to Apple investors, who addressed What was clearly a quarter was very disappointing for the company. Apple’s biggest market – this is smartphones, PCs and tablets – All are stagnant, and while Apple is fairly compensated by constantly increasing Price everything, at the end of the day there are only a lot of people willing To pay for the iPhone. This does not mean that Apple’s split devices is out of business, no: Apple Will continue to sell hundreds of millions of iPhones, as well as wearables and iMacs. However, it has become clear that the hardware alone is not enough to keep Apple at the top, At least not as I did in the past two decades. Apple needs to divide into new markets – not geographically, but digitally, and The frontier they choose to attack is business service. Now, this may not seem particularly innovative, and that’s true: going to services seems To be the trend nowadays, with Amazon, of course, being the most prominent example as It continues to expand its full range of services under Amazon Prime. Unlike Amazon, Apple’s many offerings are more disjointed, although they are so Apple It has a hardware ecosystem to keep everything under one roof. Let’s take a look at the current situation of Apple Services: you have AppleCare, iCloud guarantees Store when your phone is running out, which will surely, then you have Apple Music, which although it reportedly has 50 million subscribers, is still nothing Really revolutionary compared to the competition. All these services reflect the nature of Apple as a hardware-oriented company, the nature Tim Cook would do his best to grow. So, how does it? Fortunately for Tim, he has a great example of going: Jeff Bezos was the true Vanguard in Space services on this scale with Amazon Prime. Originally, Prime started as a simple extension of the Amazon market: you pay a subscription And you get cheaper and faster shipping. This basic functionality is still at the heart of Amazon Prime, even after adding Bezos for free Streaming, music, photo storage, e-books and everything else for it. If Tim Cook wants to become Apple’s service company, he needs to find the cornerstone around Which for the entire service delivery rule and interestingly enough, already has Answer. In 2015, Apple launched an iPhone upgrade program, where customers pay monthly fees In exchange for the latest iPhone every year. This software turns the iPhone itself into service, by moving away from the device Ownership and rental of the device. With this software as a foundation, we can easily imagine Apple Prime, where you are Get your iPhone and the full range of Apple services in one package. Now, at present, there are not enough services that Apple provides to justify such a tough move, But Tim Cook is doing his best to fix this. In March the main event announced a set of new services that would make Apple Prime proposal much more profitable. Perhaps the biggest one is the original Apple content service, called Apple TV +. While this may seem for a stranger to declare war on Netflix and Disney, Who by the way they also set up their own service in Disney +, actually Apple Competition is not necessary at all. Apple TV + has the great advantage of being funded by a very deep company Pockets, this means that Apple TV + does not have to become profitable, ever, as long Produces enough value for Apple Prime. Although Apple TV + content doesn’t work out until 2019, we already know it It will be pre-installed on Apple’s base of 1.4 billion active devices, giving it a A great advantage over streaming services that do not have their own devices. The biggest advice, however, that Apple Prime is coming is Apple apparently out of nowhere The decision to also offer a credit card. Tim Cook’s Apple Card shows intentions: he doesn’t just want to sell you Services, but also wants to report and monitor your means to buy them. This is why the card does not come annually fee, not late payment fees and less From the average interest rate: This is the purpose not to make money, but to earn your income In the next Apple service system much more difficult to reverse. Apple card After all, it does not have the card number, signature or CVV code and has The whole idea is to be used as part of Apple Pay. Exactly when Tim Cook will officially announce Apple’s premier is anyone’s guess, but the building Blocks already in place. Service revenue has only been rising for the past few years, so it is probably safe I bet Apple Prime is not too far away. Now, if you’re interested in Apple’s revenue and margins, I really want to dive deep into Their next move to a service company, you might enjoy learning how to analyze Companies of my two courses on Skillshare. They will teach you everything about how companies work and how the stock market values them, Including some examples with Apple itself. You can watch my classes for free now if you are one of the first 500 people Register with the link in the description, which will let you access Skillshare Wide range of courses on almost any subject that you may have an interest in. Once you register there, you should also follow me on Instagram to watch the great game The teasers I’m posting for each upcoming video. We’ll all hear back in two weeks, and even then: Be smart.
