Shares are near a record-high valuation ahead of new media services rollout
Over the past years, Apple Inc. hasn't seen a growth in the sales of iPhones, instead they have stayed the same. Through the years of 2012 to 2017, Apple's iPhones sales have increased slowly but since last year, data shows that they have stalled.
Since Apple has noticed this, "Apple is extremely keen to find ways to grow its services business, which already includes things like music and shows purchased through its iTunes store."(Gallagher). Services are now Apple's biggest growth driver and they plan on trying new things with their services like with the Apple TV. For example, the company will include a new Apple TV service that will allow people to bundle subscriptions to other services like Showtime and HBO.
This is a smart marketing plan for Apple because pushing to improve services is more efficient than trying to sell more of their iPhones/ products. IPhone sales are staying the same and its not bad for sales until they start declining. In the meanwhile, improving and advertising the company's services will bring Apple a much bigger profit than trying to advertise their products. Data shows us, "Service revenues are expected to grow 16% for the current fiscal year ending in September..." (Gallagher). If Apple keeps improving their services, they might be able to catch up with the sales of products which means it'll double the company's profits.
I choose this article because I am a consumer of Apple products and their services so seeing that their products have not grown over the years does not surprise me. Apple have made their products so expensive in the past couple of years and it has stopped many from buying such an expensive product. For example, the IPhone X is currently at a price of $1000 which is way to much money. If Apple drops the prices on some of these new phones, I believe their sales can go up again.
I choose this article because I am a consumer of Apple products and their services so seeing that their products have not grown over the years does not surprise me. Apple have made their products so expensive in the past couple of years and it has stopped many from buying such an expensive product. For example, the IPhone X is currently at a price of $1000 which is way to much money. If Apple drops the prices on some of these new phones, I believe their sales can go up again.
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