But a careful read of Tim Cook’s letter to shareholders suggests the opposite. Instead, Cook seems poised to double down on boring services, like the kind that have helped Microsoft and Amazon. Once iPhones reach market saturation, Apple is far more likely to enjoy greater profits from selling add-ons for those devices to the customers committed to the platform. Apple Music offers one example, as does iCloud, a subscription that has become a begrudging necessity as families need to back up and store photos from their Apple devices. Apple has tried to turn the iPhone itself into a service, via the iPhone Upgrade Program, which takes a monthly fee and allows users to get a new device every year or two—Cook’s letter indicates a desire to make that service more appealing, too. There’s also been chatter about a Netflix-style Apple subscription program for newspapers and magazines, a service that Apple might be uniquely positioned to offer… More at The Atlantic.
Good article. One thing we don’t tend to consider is that Apple losing a little could give us consumers more in the future because they will have to try harder.