The Apple iPhone: Will It Continue To Be Profitable?
With several Apple events behind us, many are taking sides on Apple’s future in hardware. It’s been the topic of several LinkedIn discussions recently, citing falling iPhone sales as proof that Apple will become a services company.
Apple’s future in hardware is still strong. They will continue to be a hardware and software company, just as they have been for some time.
Phone sales were bound to drop, eventually. There is no need for most people to buy a new one every year. We’ve reached the point where the majority of people that need one have one, so they’re no longer growing their customer base. But then, Apple already knows this. Tim Cook (or Tim Apple as he’s known in some circles) said so himself during a recent CNBC interview.
In other words, the market isn’t growing anymore.
No manufacturer can add a new ‘must have’ feature to their device every year in order to boost sales.
Another reason for lagging sales is the fact that phone costs have skyrocketed. Companies might have tried to compensate for low sales by raising prices, which can increase profits, but also be counterproductive: the higher…
