Apple Pencil supported on iPhone 11
In the face of falling iPhone sales, Apple (AAPL) is preparing for a significant upgrade to its next flagship device. Apple Pencil support on iPhone is one of the new features ready to get into iPhone 11. Over the past few years, the iPhone manufacturer has granted numerous patents, confirming its strong belief in Apple Pencil. The surprising feature adds a number of other upgrades that Apple is planning as it seeks to boost iPhone sales.
Adding another accessory in the form of Apple Pencil is crucial for Apple as it boosts revenue streams. The cheapest generation has a $ 100 price point, and Apple Pencil should increase the revenue Apple generates from iPhone sales. The iPhone 11 can come with a much larger display to work with Apple Pencil.
Apple is under enormous pressure to develop iPhones with compelling and innovative features to trigger demand. The addition of Apple Pencil may sway some customers who have so far refrained from upgrading. These innovative features can also help strengthen Apple's competitive edge amid stiff competition from Huawei and Samsung (SSNLF) devices.
The launch of Apple Pencil should mark a huge shift in Apple's policy. As it stands, the first-generation Apple Pencil only works with the iPad Mini 5, the sixth iPad generation, as well as the first and second-generation iPad Pro devices, but the second generation pen only works with 11-inch and 12-inch iPad Pro devices.
Apple has already invested $ 1 billion in Intel (INTC) modem business as part of its investment in next-generation iPhones, with which the company plans to develop 5G-capable chips, and by developing 5G chips internally, the tech giant hopes to reduce its dependence on Qualcomm (QCOM) chips.
Apple Games on 2019 5G iPhone
iPhone 11 is set to be 5G enabled and powered by Qualcomm chips, and a switch to Intel chips will only come into play when Apple refines the technology. 5G integration is crucial if Apple is to access subsidies from network operators. Verizon (VZ), AT&T (T) and T-Mobile (TMUS) are expected to grant subsidies only on 5G compatible phones.
In addition to the Apple Pencil and 5G capability, the iPhone 11 will reportedly have a triple rear camera setup. A 10-megapixel front camera and a 14-megapixel rear sensor are a way for Apple to challenge Sony (SNE). Other features that are likely to be added to iPhones from 2019 include an OLED display model. Large batteries are expected to accommodate 5G connectivity, known to consume a lot of power.
Apple Revenue Base Diversification
Although Apple continues to work with the Apple Pencil and iPhone 11, a new trend of diversity is slowly emerging. unlike the company's huge reliance on iPhone sales.
Apple reported $ 53.81 billion in revenue in the third quarter of fiscal 2019. Similarly, iPhone revenue came in at $ 25.99 billion, accounting for 48% of Apple's total revenue. In contrast, the company reported revenue of $ 53.3 billion in the third quarter of 2018, with iPhone sales accounting for 56% of total revenue, at $ 29.9 billion.
Growth in Services Revenue – as well as Wearables, Home and Accessories – It helps offset a decline in iPhone sales. For example, service revenues for the last quarter were $ 11.46 billion, up from $ 9.55 billion a year ago. Other product revenues increased to $ 5.53 billion from $ 3.74 billion reported in 2018.
As a result, Apple is moving the needle to other segments with the prospect of providing solid revenue streams. While the iPhone 11, with innovative features like the Apple Pencil, is an important product, it is clear that Apple's other businesses are growing impressively.