Apple is diversifying its revenue sources
Apple (AAPL) wants to reduce its dependence on iPhones and has started investing aggressively in other segments, including original programming. The company has roped in director Steven Spielberg and actress Jennifer Aniston to create original content. However, the company hasn’t announced how it will distribute the content.
However, the original content space is extremely competitive, with Netflix (NFLX) and Amazon (AMZN) already dominating this space. Almost two-thirds of Apple’s revenue came from iPhones in fiscal 1Q18.
While the company’s revenue from iPhones grew year-over-year in fiscal 1Q18, units sold fell slightly—mainly because of the $1,000 iPhone X. While growth in revenue is heartening, fewer units sold put downward pressure on the company’s revenue from “services,” which is directly proportionate to units sold.
Apple Music on the verge of beating Spotify in the United States
The tech juggernaut introduced its music-streaming service, Apple Music, in June 2015. According to the Wall Street Journal, Apple Music is now on the verge of overtaking Swedish streaming company Spotify AB in the United States in terms of paid subscribers.
According to the report, Apple’s paid user base is increasing at 5%, compared to Spotify’s 2% growth, which puts Apple on track to be the market leader in the United States by this summer. However, globally, Spotify remains a clear leader, with Apple Music in second place.