Artistic inspiration of future iPhones showing glowing touch screens (Photo : YouTube/ConceptsiPhone)
Apple may be the king of smartphone arena, but its future does not seem very sustainable if iPhone is all the company has to offer. The company observed decline not only in the iPhone sales but other big hardware hits as well.
The tech giant earned $50.6 billion in revenue and a net profit of $10.5 billion in the quarterlies, which is great but on the long term, fact points out otherwise. Apple is known for iPhone, but understandably for iPhones only. Other big hardware hits like iPad and Mac are also reportedly losing their charm to the public, ZD Net reported.
Apple believes that there is still so much room to be acquired by its current products in the market. However, the analysts argue that if the company continued to the goal to win more users from Android arena, it will inevitably face stalemate.
Leading Android phone makers like Google, Samsung, LG and few others are earning enough revenue from their respective smartphone sales, but they also have products to recline on. For example, Nexus phones are returning a nominal profit to the search behemoth compared to the revenue from its online advertisement.
Smartphone sales in the most demanding markets as the United States and Europe have been saturated while China and India are still considered bright spots. Apple's new iPhone SE, which comes as affordable as it can get for an iPhone, is aimed at infiltrating the eastern markets with the new mid-range offer.
Additionally, Apple is well aware of the fact that the effect of saturation becomes less significant after each new cycle of smartphone sales. For example,the people would readily dump iPhone 7 for the next generation Apple phone, thanks to their promise of quality and consistency, iPhone has become standard for good financial status.
The other side of the picture puts Apple in a difficult position where investors are not interested in growing towards any other direction, Financial Times reported. Unlike Google and SpaceX, Apple is known as a non-risk taker, just like Toyota.
The current bets for Apple beyond iPhones are Apple Watch, Apple Pay, Apple HealthKit, apps and music, and the new home automation network called Apple Home Kit. But these ventures are nowhere near sufficient to keep the company's head above the water in future, where Google and Chrysler could be selling self-driving minivans.
The following video highlights Apple iPhone SE, company's new mid-range offer to Eastern markets.
