Apple is getting ready for 'life after iPhone'

Apple is getting ready for 'life after iPhone'
According to the Wall Street Journal, Apple has been preparing for 'life after iPhone' by making changes to its executive lineup. Apple is trying to lessen its reliance on its smartphone, which has been uncharacteristically struggling this year. The company has been aiming to hit $50 billion in services revenue by next year; last quarter it reported an all-time high of $10.75 billion in gross for that unit. The division includes Apple Pay, AppleCare, the App Store, iTunes, Apple Music and more.

Wall Street giant Morgan Stanley says that the services unit will make up 60% of Apple's growth over the next five years. That compares with the 85% of Apple's growth attributable to the iPhone over the previous five years. The company is looking for ways to increase services revenue and is hoping to launch a subscription news service that would cost users $10 a month. Currently, Apple takes in payments from 360 million subscriptions. It is hoping to increase that to 500 million by 2020.

Last year, Apple increased its spending on research & development by 23% to $14.24 billion. There has been speculation that Apple's next big product will be AR glasses for consumers, similar to Google Glass. Two years ago, former Apple analyst Gene Munster said that Apple's AR glasses will prove to be bigger than the iPhone. Such a product could launch in 2020-2021.

Apple has shaken up the executive suite, replacing retail head Angela Ahrendts with HR chief Deirdre O’Brien. Bill Stasior, the executive in charge of Siri has been ousted while AI chief John Giannandrea has joined Apple's executive team. 200 employees from the division working on self-driving cars have been axed. Apple has a strategy for life after iPhone, and we are just seeing it put into motion now.

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32 Comments

1. Wazupmrg

Posts: 189; Member since: Apr 10, 2017

Uncharacteristically struggling? Maybe innovate once in a while

4. TheOracle1

Posts: 2340; Member since: May 04, 2015

Innovation died with Jobs. Any freshman business student could have predicted this 5 years ago with over reliance on one product. I think Apple should use some of their huge cash reserves and invest in other companies. Go into the Venture Capital business. Similar to how Yahoo were early investors in Alibaba which sustained them well beyond their useful life. Like Sofbank buying ARM etc. They could commit $100bn and still have over $150bn left to play with. The iPhone will continue to sell no matter what anyway.

19. Greenmule

Posts: 129; Member since: Apr 24, 2017

Or buy Verizon. VZ has a market cap of $228B +/-. Half cash, half APPL stock; what a marriage. A buyout like no other. "Oath" sure isn't working for Verizon. How many $1k cell phones can a company sell into emerging markets?

44. Marcwand3l

Posts: 446; Member since: May 08, 2017

Apple currently has over 114 billions in debt. Why does everybody keep ignoring this when talking about how much money Apple has? Realistically it doesn't even matter how much money a company has, if it doesn't have vision and a clear direction it's all for nothing anyway. Look at Microsoft. It has way less money than Apple but they made the right investments at the right time and now their dependence on Windows is almost gone completely.

7. Whitedot

Posts: 833; Member since: Sep 26, 2017

I know , ir sounds like pa is out of touch with reality as ussualy.

20. MrHate

Posts: 318; Member since: Feb 09, 2015

Hey just go and innovate haha. Let's just completely redo how a phone is supposed to be. No problem man. /s You guys that say stuff like this do realize that true innovation is extremely difficult at this point of time for phones right? Or are you deluded with so much hate that you can't even notice this obvious fact. And no gimmicks that you only use once are not a innovation. Smartphone are already extremely progressed and there isn't something new you can just "innovate" with the snap of a finger while making it user-friendly at the same time. But go on and keep on hating.

25. wickedwilly

Posts: 727; Member since: Sep 19, 2018

I agree it is getting more and more difficulty to innovate in this area now, However the problem is in the last five years or so there has been innovation and Apple is mostly following not leading.That is not hating it is a fact.

33. hemedans

Posts: 759; Member since: Jun 01, 2013

Problem is currently companies are greedy, if good old companies were here you would see lot of innovations.

35. midan

Posts: 3019; Member since: Oct 09, 2017

Company who do one flagship phone launch in a year and close to end of the year hardly ever can lead if others are releasing products all over the year. And also what you said isn't fact, Apple have been leading in stuff which are actually copied for Android devices after years. Last example is Face ID and others still haven't catch Apple there.

45. Marcwand3l

Posts: 446; Member since: May 08, 2017

And Android manufactures has been leading with stuff like in display fingering sensors. I don't see why would other companies need to "catch up" to Apple's FaceID.

52. midan

Posts: 3019; Member since: Oct 09, 2017

Because future is touchless. Basicly fingerprint scanner under the screen is still just a fingerprint scanner. Everytime when your device need your ID you need to push the screen. Face ID is touchless and do lot of things for you. You would understand this if you use iPhone face ID for a week. It's lot more than unlocking your phone.

53. Marcwand3l

Posts: 446; Member since: May 08, 2017

We are not in the future right now and touching our phones it's the Main Interaction. Touch ID's advantages are petty at best, you are lying tp yourself.

76. midan

Posts: 3019; Member since: Oct 09, 2017

I use touch ID every day with my iPad and Face ID is definately better. When i open banking app with my iPad, i have to press touch ID, when i open whatsapp if i could do that with iPad, same again need to touch the scanner everytime. When filling passwords etc in websites same again, opening photo app which is locked. Yet again same thing. Need my finger everytime. Also when someone check my lockscreen they can't see the messages, when i look my phone it shows them right away, very cool. Face ID does all these for me automaticly it's like there isn't any lock. It's you who are lying to yourself, i bet you have never used face ID for even one day, i've been using it for a year ;)

34. midan

Posts: 3019; Member since: Oct 09, 2017

"You guys that say stuff like this do realize that true innovation is extremely difficult at this point of time for phones right? Or are you deluded with so much hate that you can't even notice this obvious fact. And no gimmicks that you only use once are not a innovation. Smartphone are already extremely progressed and there isn't something new you can just "innovate" with the snap of a finger while making it user-friendly at the same time." Nailed! If we don't see results it doesn't mean companies aren't innovating all kind of things all the time. We just see fraction of those stuff companies are doing, because that innovation also need to be useful.

42. TheOracle1

Posts: 2340; Member since: May 04, 2015

Sure Midan. Here's a useful innovation, return the headphone jack and TouchID.

51. midan

Posts: 3019; Member since: Oct 09, 2017

I have touch ID with my iPad, hope it would have Face ID. Headphone jack i have needed once.

2. abhicool

Posts: 49; Member since: Sep 25, 2018

I think they have realised that there is no innovation left from them to cater. Hence soon they will extinct. Life after iphone??? It was Android...is android and always be an Android

13. akistz

Posts: 31; Member since: Sep 26, 2018

Hold your horses mate android brands innovate more or less the same nowadays

15. TheOracle1

Posts: 2340; Member since: May 04, 2015

Same as Apple? Errrmm no.

3. Vogue1985

Posts: 483; Member since: Jan 24, 2017

Life after IPhone.... That's sounds like a loser language, or someone is who ready and wants to die lol. Apple has lot going for it, they need to experiment beyond the usual. Subbrand and go wild lol, aka McIntosh Red, Zestar, Liberty (they are different types of apples lol). #Fired

5. midan

Posts: 3019; Member since: Oct 09, 2017

The difference, when Apple sells their products to users they are getting billions from them after years they bought the product. When others sells the phones, it's almost all what they get. Except google. This is very crucial thing when people keep their devices longer and longer.

9. Back_from_beyond

Posts: 1440; Member since: Sep 04, 2015

For Apple however there are a few threats to its services side growing. First of all the increasing animosity towards Apple in China and stagnant/declining sales elsewhere in the world could lead to a shrinking userbase in the years to come. Then there are lawsuits out there that want to force Apple to allow competitive app stores on its OS and if allowed it could have a significant impact. And then of course there is the increasing resistance from service providing apps like music and video streaming services to deny Apple it's percentage of the subscription costs by getting users to go outside the App Store to set up their payments. Along with users keeping their devices longer and declining sales as a result, Apple may actually struggle, if not fail to grow.

36. midan

Posts: 3019; Member since: Oct 09, 2017

Lots of coulds and maybes ;)

6. midan

Posts: 3019; Member since: Oct 09, 2017

double post

8. alligator

Posts: 104; Member since: Jan 09, 2016

They should know that all those services exist because of the iPhone. If they plan to sell all of them with iPad or iMac - this is not going to work. The people want to have all these subsriptions out of their pocket.

10. japkoslav

Posts: 1521; Member since: Feb 19, 2017

"Apple is getting ready for 'life after iPhone'" Every company where the main income are mobile phones has to change its strategy if they want to remain relevant and profitable. It is a logical step for every industry, it's been known for ages. This is not something new PA, it's basic stuff. The reason is simple, even 200$ Xiaomi phone gets you 99% of the experience 1000$ iPhone can offer + everyone who wanted a smartphone already has a one or two.

11. boriqua2000

Posts: 258; Member since: Mar 11, 2009

They only made $10.75 billion in the last 4 months?? Those poor bastards

14. TheOracle1

Posts: 2340; Member since: May 04, 2015

Look up foresight in the dictionary. It'll help you.

12. TypicalGeek

Posts: 216; Member since: Feb 19, 2015

How the mighty fall

22. MrHate

Posts: 318; Member since: Feb 09, 2015

Yes Apple the company that has reached a worth of over a trillion has fallen.

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