In New Interview Tim Cook Talks Up Services & iPhone but Stays Silent on what's Ahead
For Apple fans, there's an interesting yet long winded article out today by Fast Company. If you're new to Apple, the article will definitely fill in some of the blanks about selective parts of the company's history very nicely.
In June we posted a report titled "Forbes Misguided View is that Apple has Missed the AI Revolution," wherein the argument was made that Apple's competitors have yet to prove their leadership in AI in any meaningful way and yet the press has written Apple's work off with Siri as if they're losers.
On Sunday we posted a report titled "Chinese Smartphone Players make Apple Look like a Trend Follower instead of a Leader." On Friday we posted a report titled "Cocky Samsung believes that they're the Leader of 'Meaningful Innovation.'" It's a trend in the press with power competitors behind this push to paint Apple as a laggard and no longer an innovator in an attempt to take down the number one smarphone maker in the world at the top premium tier where the profits are made.
Bloomberg's 2015 report had Apple making 90% of the profits, to be exact. Of course Apple's competitors are scratching their eyes out, speaking in tongues and renting their clothing like biblical times. We should expect nothing less. Would we like to see Apple deliver another gigantic product hit like the iPhone or iPad to knock these critics out once and for all. Yes we would, but that's not likely in the cards anytime soon.
The Fast Company report points out a few key points made by Apple's CEO Tim Cook. One is that "subscription services such as Apple Music and iCloud storage are starting to deliver significant cash. Revenue from services now accounts for 12% of Apple's total sales, up from 9% the year before. In fact, Apple's services revenue exceeds Facebook's total revenue." How's that for perspective. Where's Facebooks great Oculus Rift and AI profits? Nowhere of course. So why is the press falling over themselves about Facebook?
Fast Company further noted that Tim Cook said that "the company has just gotten started. 'Oh, yeah. I expect it to be huge,' he says, smiling, his Alabama drawl becoming more pronounced as he delivers the good news.
The iPhone will continue to morph, in ways designed to ensure its place as the primary way we interact with and manage our technological experience for the foreseeable future. Apple will sell more devices, but its evolution will also enable it to explore new revenue opportunities. This is how Apple adapts. It expands its portfolio by building on the foundation laid by earlier products. That steady growth has made it broader and more powerful than any other consumer technology company."
So Where's the Next Killer Product like the iPhone?
Secondly, Fast Company's Rick Tetzeli noted that "It's entirely possible that Apple will never introduce a product as universally desired as the iPhone. That doesn't mean it won't continue to be a great company. 'The iPhone entered a market that was the biggest on earth for electronic devices,' Cooks tells me, as we're wrapping up our interview. 'Why is that? It's because eventually, everyone in the world will have one. There are not too many things like that.'
Then Cook makes another one of his points that can get lost if you don't understand the care he takes with every word. 'It's hard to imagine a market defined in units—not revenues—that's that big.'
In terms of unit sales, yes, there may never be another iPhone. But in terms of revenue, well, look at the industries that Apple is just now entering, or is rumored to be pursuing. Media and entertainment is a $550 billion global market. Global car ownership is a $3.5 trillion business. Annual global health spending is more than $9 trillion.
And while Apple may not currently dominate any of these arenas, remember that analysts once thought Apple would have a hit on its hands if it could garner 1% of the mobile phone business."
That last line reminded me of Steve Ballmer who once laughed at the iPhone as it debuted but laughs no more. Those who underestimated Apple and the iPhone revolution paid a very heavy price; just ask Microsoft, Nokia and Blackberry.
For more, read the full Fast Company report titled "Playing The Long Game Inside Tim Cook's Apple," here.
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