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| Apple's success continues due to the huge success of AirPods |
The growth of the Apple App Store appears to have slowed in 2019, which could be a negative sign that the company is focusing on developing service businesses to make up for weak iPhone sales. Although Apple has been connected to services for two years, most of its interests have shifted to mobile devices, including AirPods, Apple Watch smart, and Beats speakers.
AirPods caught the most attention. Apple launched two new versions of AirPods in 2019. On the one hand, the regular models are updated with longer battery life and an optional wireless charging status. Pro models.
In addition to the iPhone, AirPods appear to have been very successful during the Apple vacation as well, as it would take a month to order the AirPods Pro version released on the company's website in October 2019.
"We believe demand for Apple Watch and AirPods could exceed $ 10 billion this quarter," Citibank analyst Citibank wrote in a research report on December 23, 2019.
“In general, we believe Apple services will continue to grow and help generate the margins we need, but we believe we need to focus on mobile space.”
This optimism with Apple mobile devices pushed the company's share price to a new level this year, when Apple shattered $ 300 a share last week, as many analysts said, raising the target share price.
If Citibank's $ 10 billion estimate was correct in the last quarter of 2019, Apple might announce that the company has earned and should have earned about $ 27 billion in wearable items and accessories during 2019. January announced its results, receiving concrete answers.
To further clarify this figure, Twitter is expected to generate sales of about $ 4 billion over the same period, almost seven times that.
Apple's wearable strategy is very similar to the service strategy: Although iPhone sales no longer grow, there are still a billion iPhones in use around the world, meaning a billion opportunities to generate more revenue from every user. When selling a functional iPhone accessory.
This means that Apple's mobile business has a lot of room to grow. However, this strategy can only be used if the Apple accessories are good enough to demonstrate that users have to spend $ 159 (base price for AirPods) or more plus a $ 1,000 advance on the iPhone. More labor costs.
The company has built an excellent reputation as a manufacturer of quality hardware products, while its reputation as a software and other services manufacturer has decreased compared to the latest subscription services + Apple News + Apple TV + and Apple Arcade. News + strives to attract users.
On the other hand, AirPods and Apple Watch are great successes for the company. Both provide better protection for Apple systems compared to the company's digital services. Technically, AirPods can work with Android phones, but the best iPhone experience is constantly increasing, which increases the chances of people continuing to buy new iPhones.
If Apple mainly focused on services in 2018 and 2019, mobile devices should benefit from this year.