Apple is a $1 Trillion company that continues to see growth in overall revenue. One thing that is alarming is the slowing sales of iPhones overall.
The Hollywood Reporter (THR) is reporting that Apple is seeing a slow down in overall iPhone unit sales, but is still seeing an increase in iPhone revenue. Basic economics would tell you that a higher price point for the
Apple is now selling iPhones starting at $999 as opposed to iPhones starting as $600 as before when they had higher unit sales. So if Apple is able to sell less iPhones (and not much less) for a higher pricer tag, you will see the revenue growth.
Apple’s overall revenue is also growing thanks to their new focus on subscription services like Apple Music, iCloud, and also iTunes sales.
Apple’s new focus on the subscription side of their business can ultimate lead to a steady guaranteed revenue that will continue to grow as they offer more and more to their platform.
The new focus is such a pivot from the hard sales on hardware that Apple announced that it would actually stop reporting specific unit sales to their investor, a worrying move to investors.
The company is working on developing more exclusive content for an eventual streaming service that could be integrated with Apple Music or iTunes.
Overall, Apple saw $10 Billion in subscription based revenue, up 10% from last quarter. Good news for the tech giant.