Monthly Archives: April 2016

What’s Next For Apple?

Apple computers are one of the most unique large tech companies because they are not solely an “internet company.” That is to say their revenue primarily comes from the sales of computers and hardware. It seems almost crazy to say that this is the exception to the rule in tech, but if you look across the board at the tech giants you get: Google (alphabet), Amazon, Facebook and so on, none of which have a real physical presence in terms of the hardware they are serviced by.

Apple CEO Tim Cook has addressed that this week, in a state of the company address to shareholders, and says that it is high time that they change how they do business this upcoming year, and that they aim to put a greater emphasis on its online services as well as iCloud, iMessage, and Apple Music. This is not to say they are going to over haul their whole infrastructure of the company, their bread and butter will always be the iPhone and the Macbook Pro; however, there is definitely room that they can expand and grow their base in new markets. wowww

This is all well and good and makes sense from their perspective and the perspective of their stock holders, except when you consider the face that Apple isn’t very good at providing online service. That is to say, at the very least, they do not appear as capable as some of their rivals like Google and Microsoft and it has all the potential to be a blunder for the company.

The problem is that unlike the other companies Apple isn’t a service first kind of company. The others have their entire infrastructure and priories around this fact, where as Apple has it a means to support their other products. This coming from analyst Ben Thompson of Stratechery who writes, “the root problem is all these services cases is the lack of accountability” as long as the iPhone keeps the money flowing and the captive customers coming, it doesn’t really matter if Apple’s services are as good as they could be.”

dfgggggrHe goes on to claim that, “the solution to all these problems- and the key to Apple actually delivering on its services vision is to start with the question of accountability and work backwards: Apple’s services need to be separate from the devices that are core to the company, and the managers of those services need to be held accountable via dollars and cents, if that makes sense.”

On play for them that is on the table is that they have the means to buy Dropbox which has eluded to the fact that it wants to be bought out by a major tech company and their founders can cash in. This is because drop box has an insanely bubble valuation of 3.1 billion dollars. Which is absurd when you consider the simplicity of the service they provide. However, what they do have is brand recognition in the service aspect of tech, something Apple desperately needs, or at the very least wants.