Apple is reportedly planning to shift its revenue model
Apple (AAPL) has evolved several times over the decades to move with the times. The tech giant’s venture into smartphones about a decade back revolutionized the handsets space. Now, as its iPhone sales are shrinking, the company has been trying to ramp up its fast-growing Services segment. According to a recent report by the Wall Street Journal, Apple may soon move away from the iPhone as the core of its business.
Services are growing quickly but still make up a small portion of revenue
The Wall Street Journal points out that a good part of the company’s shift will be towards its Services unit. In the first quarter of 2019, which ended in December 2018, the Services segment generated revenue of $10.9 billion, a 19% YoY increase.
While this is a slowdown from previous quarters, the segment is still on course to generate $50 billion in 2020, which is the company’s goal. Soon, the company is expected to launch its own streaming service, which it has been working on for over a year.
After peaking at around $233.4 per share in October 2018 and crossing a market cap of a whopping $1.1 trillion, Apple’s stock slid by nearly 40%. The company has since rallied over 20% and briefly reclaimed its top position as the most valuable public company in the world. The stock is up 9% year-to-date.
Apple (AAPL) is not the only smartphone vendor that's seeing shrinking unit sales.
With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.
Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).
Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.
Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.
The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.
The US equity markets have come under pressure this month because of the ongoing US-China trade war.