May 2, 2019,   9:50 AM

Apple's New Strategy Will Be Different; Here’s Why

Hisham Ibrahim


apple music

Image source: Flickr

Whenever the word “Apple” is mentioned, before thinking of the fruit, we think about the technology icon, headquartered in California, US. And when we think about “Apple” we think about its line of products, like iPhone or iPad.

Now Apple is trying to change our minds.

In the first quarter of 2019, Apple generated sales of $46.6 billion—down from $51.3 billion in the first quarter of 2018. However, these figures are just for the sale of its products. Apple also offers a wide variety of subscriptions for users, such as App Store, Apple Pay, Apple Music and a new service expected to launch soon, Apple News+. These services generated $11.5 billion in sales in the same period—up from $9.9 billion last year.

Apple’s subscriptions are mostly monthly based. Tim Cook, CEO of Apple, says that Apple now has more than 390 million users, and services are responsible for a third of the company’s sales.

As a result, Apple is beginning to launch new services, the most recent for gaming and streaming. Apple’s future strategy might not be in their line of products but in their line of services.

This could also boost product sales, as all of Apple’s services require an Apple product—something Tim Cook no doubt has in mind. Unless Apple decides to offer its services on other Android platforms? Time will tell.

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