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Apple moves to services



<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Apple] AAPL ), Thursday, reported its revenue Q4 2018 revenue and while the average sales price for iPhone, the company that was sold in the quarter, hit expectations, the number of sold phones fell short. " Apple ( AAPL ) reported its income Q4 201
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and while the average price for iPhone sold in the iPhones quarter saw expectations, the number of sold phones fell short.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " The stock was down on Friday, after the loss and the news that Apple will no longer break out individual iPhone, iPad and Mac sales in the profit and loss accounts. The mixed quarter also included softer than expected projections for Q1 2019, the most important quarter. "Data Reaction =" 23 "> The stock was down on Friday after the loss and news that Apple will no longer break out individual iPhone, iPad and Mac sales in its income statements. The mixed quarter also included softer than projected projections for the first quarter of 2019, which is the most important holiday quarter.

<p class = "canvas-atom text text Mb (1.0em) Mb (0) – sm Mt 0.8em) – sm" type = "text" content = " But Apple has prepared for this moment. It was probably apparent to the company that iPhone sales would not maintain the high growth Apple has seen over the years. After all, there are only so many people in the world who can buy iPhones, so they created an ecosystem that locks users into something that makes they are more likely to adhere to Apple-owned services and accessories like iTunes and Apple Watch. "data-reactid =" 24 "> But Apple has prepared for this moment. It was probably apparent to the company that iPhone sales would not maintain the high growth Apple has seen over the years. After all, there are only so many people in the world who can buy iPhones. Therefore, it created an ecosystem that locks users, making them more likely to stick to Apple-owned services and accessories like iTunes and Apple Watch.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " And that there are no mass emigration from Apple Hardware users is how the company will continue to grow in the future. "data-reactid =" 25 "> And that there is no mass emulation from Apple Hardware users is how the company will continue to grow in the future.

Higher prices are here to be

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text "content =" Apple's new iPhones – XR, XS and XS Max – are expensive promotions. XR which will be the smartphone for the rest of us, starts at $ 749. The iPhone XS starts at $ 999, while the iPhone XS Max starts at $ 1,099. "Data Reaction =" 27 "> Apple's New iPhones – XR, XS and XS Max – are expensive deals. XR, which will be the smartphone for the rest of us, starts at $ 749. It's $ 50 more than iPhone 8, the phone is supposed to replace. The iPhone XS begins with $ 999, while the iPhone XS Max starts at $ 1,099.

Apple's faithful Apple is more than willing to fork over the extra money. Apple's average iPhone sales price for The fourth quarter of 2018 was $ 739, up 41%. "data-reactid =" 28 "> And Apple's faithful is more than willing to fork over the extra money. Apple's average iPhone sales price for Q4 2018 was $ 739, up 41%.

<p class = "canvas-atom text text Mb (1.0em) Mb (0) – Sm Mt (0.8em) – sms = type =" text "content =" Total iPhone transfers, however, were beyond expectations from Wall Street. Analysts had expected the technology giant to sell 48.4 million iPhones in Q4, but the company instead moved 46.9 million phones. offered weaker guidance for Q1 2019, announcing that it will stop breaking out iPhone sales in the profit and loss account. The weak guidance, mixed with the salesman, may have caused some investors to believe Apple could face serious problems. data-reaction = "29"> Total iPhone shipments, however, were beyond Wall Street expectations. Analysts had expected the technology giant to sell 48.4 million iPhones in Q4, but the company instead moved 46.9 million phones. Apple also offered weaker guidance for Q1 2019, announcing that it will stop breaking iPhone sales in the performance report. The weak guidance, mixed with the salesman, may have led some investors to believe that Apple could have serious problems.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It is inevitable that if Apple continues relying on smartphone sales, they will slow unless [Apple] continues to increase the average selling price and I do not think we have seen the limits of average selling prices, explains Forrester Vice President and analyst Julie Ask. "data-reactid =" 30 "> " It's inevitable that if Apple continues to trust On smartphone sales, they will slow unless [Apple] continues to increase the average price and I do not think we've seen the limits of average sales price, Forrester Vice President and Chief Analyst Julie Ask explained.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Apple's decision to bump up Its iPhone prices, though, were clearly made in anticipation of sales plateauing in mature markets like the United States, Europe and the still crowded Chinese smartphone market. With the success of iPhone X after last year's launch, Apple also realized that it could sell expensive phones and people would nevertheless, eat them up, which means the high prices are too good. "data-reactid =" 31 "> Apple's decision to bump up its iPhone prices was clarified in anticipation of sales platform in mature markets like the US, Europe and the still crowded Chinese smartphone market. With the success of iPhone X after last year's launch, Apple also realized that it could sell expensive phones and people would still eat them, which means that the high prices are too good.

<p class = "canvas – text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " It is true that Apple's decision no longer destroying iPhone sales will do it more It's hard to analyze that part of the business, which can make investors nervous. Apple's strategy, however, seems to be making Wall Street focus less on total iPhone sales and looking at the company as more "data-reactid =" 32 "> It's true that Apple's decision to no longer destroy iPhone sales will make it harder to analyze that part of the business, which can make investors nervous. Apple's strategy, however, seems to make Wall Street focus less on total iPhone sales, and look at the company as more than just a smartphone manufacturer.

Services as the driver

<p class = "canvas text text text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Apple CEO Tim Cook and Company have laid the foundation for the previous earnings talks, Cook referred to Apple's Services business as an expanding part of the business, one that could stand as a Fortune 100 company if it was broken on Apple CEO Tim Cook and Company have laid the foundation for this move for some time now. During earlier earnings talks, Cook referred to Apple's Services business as an expanding part of its business, one that could stand as a Fortune 100 company if it was broken on its own.

<p class = "canvas canvas" text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" And it's the service part of the business that can be the real driving force for Apple according to how rt as the iPhone growth is falling. Since Q3 2015, Apple's service sector has had double digit growth last year. "data-reactid =" 35 "> And it's the service's part of the business that could be the real driving force for Apple as iPhone growth slows. Apple's service sector has seen double digit growth since the third quarter of 2015.

<p class = "canvas atomic text text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " services that include everything from iTunes, Apple Music and App Store for Apple Care, Apple Pay and iCloud, generated 10 billion dollars in revenue, the segment's highest quarter. With Apple expected to launch its own streaming service in 2019 and more customers using Apple Music, services can continue to see such growth for some time. "data-reactid =" 36 "> In the fourth quarter of 2018, services that include everything from iTunes, Apple Music and App Store to Apple Care, Apple Pay and iCloud generated 10 billion dollars in revenue, the segment highest quarter yet. With Apple expected to launch its own streaming service in 2019 and more customers using Apple Music, services can continue to see such growth for some time.

<p class = "canvas-atomic text text Mb (1.0em For sure, iPhone is still Apple's largest revenue generator, making it $ 37 billion in Q4 2018 or more than half of total revenue. But with more than 2 billion iOS devices on the market, services such as Apple Music and iCloud have a complete audience they can associate with. "data-reactid =" 37 "> For sure, iPhone is still Apple's largest revenue generator, making the company $ 37 billion in Q4 2018, or more than half of total revenue. But with more than 2 billion iOS devices on the market already have services like Apple Music and iCloud a pre-populated audience they can tap into.

<p class = "canvas atomic text text Mb (1.0em) Mb (0) – sm Mt (0.8) em) – sm "type =" text "content =" Then it is rumored that Apple will launch its own streaming service in 2019. The offer is said to include $ 1 billion in original programming from big names film and television creators like Steven Spielberg. The information reports that Apple will first start its service, competing directly with heavy-hitters like Netflix, in the United States, rolling "data-reactid =" 38 "> Then there is rumors about that Apple will launch its own streaming service in 2019. The offer is said to include $ 1 billion in the original programming of big-name film and television creators like Steven Spielberg. The information reports that Apple will start its service, competing directly with heavy -hitters like Netflix, in the United States, and roll it out to 100 other countries afterwards.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" If it goes off, creating Apple's service segment may be far higher than expected. says that services are expected to be a $ 50 billion business by 2020 . "data-reactid =" 39 "> If it goes off, it could create Apple's service segment far higher than expected. Cook says services are expected to be a $ 50 billion business by 2020 .

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt) – sm" type = "text" content = " So while Apple iPhone sales may not see it type of intense growth that the company experienced in the phone's heyday, do not count tech giant out yet. "data-reactionid =" 40 "> So while Apple's iPhone sales may not see the kind of intense growth the company experienced in the phone's heyday, the tech giant does not count yet.

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" More from Dan:

More from Dan:

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Email Daniel Howley at dhowley @ oath. com; follow him on Twitter at @DanielHowley . Follow Yahoo Finance on & nbsp; Facebook & nbsp; Twitter & nbsp; Instagram and LinkedIn. "data-reactid =" 48 "> Email Daniel Howley at dhowley@oath.com; follow him on Twitter at @DanielHowley . Follow Yahoo Finance on Facebook, Twitter Instagram, andLinkedIn.


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