The service segment is helping Apple make a lot of money
Some analysts think that Apple’s additional services could become one of the strong reasons why consumers buy more iOS devices.
According to Blazetrendsthe component supply chain continues to face difficulties, and the iPhone SE 3 and iPhone 13 mini models have not been as successful as expected, so the service become Apple’s point of difference from competitors.
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The output of iPhone 13 mini and iPhone SE 3 in the past time has not been as expected by Apple screenshot digitaltrends |
Report from 9to5Mac Apple is reducing production of iPhone models. The origin of this decision is because difficulties are still happening with the components supply chain.
Meanwhile, some market analysts indicate that Apple may cut device output further in the near future. Recently, famous analyst Ming-chi Kuo changed his forecast for global sales of iPhone SE 3 from 25 – 30 million units to 15-20 million units. Other way, iPhone 13 mini also did not have the expected success when users are choosing the standard iPhone 13 model with a larger screen.
The upside for Apple comes from services, where they can become one of the main reasons for users to buy an iOS device as it will set them apart from the rest of the market. Services like Apple Music, Apple TV+ and iCloud make up “an important difference,” said UBS Securities analyst David Vogt.
Seeking Alpha’s recent survey shows that the growth rates of Apple Music, iCloud, Arcade and Fitness services are increasing, while Apple TV+ remains stable.
On the other hand, users of iPhone 12 and iPhone 13 models are helping to drive revenue for Apple services, especially the boom from the Apple Store during the pandemic. In addition, the implementation of Apple Pay continues to be developed.
Elsewhere, in the same survey, Seeking Alpha shows the percentage of users who retain and upgrade Iphone Apple is still at a high level, especially in the US.
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