Services; the chicken that sells for Apple went

Days ago we reported in an analysis about the arrival of the apple tree $ that of the secrets of Apple’s growth to say that there’s magic in Apple is called the service sector and this sector is a boat that arrives all Apple’s revenue from all its sales of Apple devices and Mac devices together. The mouth of this sector and why we believe it’s a magic train or a chicken sells for Apple is gone.

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What is the service sector in the Apple?

If you ask any person what sells the Apple and the money will reply is the iPhone and the iPad and headphones and chargers and cables. But in fact its sales of the heavens and the grinders and then and Mac devices and all products Beats less of its revenue from services.

Services in a nutshell is Apple products are intangible such as the company’s revenue from Apple pay and extended warranty AppleCare, licensing and various fees and programs and books and music and movies. In short, all of Apple’s revenue from things that are not concrete, but check the Return Material.


Why the perfect and strong?

Where that stems from the proceeds of Google? The proceeds of the Facebook? Microsoft? Oracle? The majority of the revenues of these companies be of service. This sector its main advantage that it is not affected by the seasons. When you know Apple for the iPhone in September, its sales rising sharply and peak in the last quarter of the actual year (actual) and then begin to decline gradually. The same thing happens with any device, from any company. But the services it is quite you buy the game all the time and watch movies and in various stores and other services all the time. Maybe more than a little situation at the time of the holidays as watching the movies, buy the toys, but the influence of the seasons in sales is nothing compared to what happens in hardware.

The following is Apple’s revenue from this sector since the beginning of 2016 until now and watched the growth of this sector (figures 6 months of the year the actual rather than the past):

◉ The first half of 2016 the proceeds of 11.967 billion

◉ The second half of 2016 the proceeds of 13.496 billion

◉ The first half of 2017 revenues 14.307 million

◉ The second half of 2017 revenues 16.972 million

◉ The first half of 2018 the proceeds of 18.738 billion

As shown in the figures above, this sector is growing rapidly and continuous and is not affected by seasons the second half will be greater than the first half hour, then comes the first half of the following beating the second half the previous, and so on.

If you compare any product Apple has with the services it would be counterproductive for the first 6 months after the chests sell the Apple perhaps more pressure.


Less competition and products permanent

Core strengths in the services sector have Apple to compete in much less. The phones like its rival severe. Yes Apple excels in the category of top phones and more than it sells all of its competitors combined. But the competition is tough for Apple to develop a phone it is continuously offering new devices and spend billions in research. But in the service sector competition, much less from the hand of Justice as well as durable products. For example, related to Apple on the purchase of thousands of movies such as and vulnerability to Apple in iTunes and it ended up that the film does not need updates and changes it before it forever. It’s the same in other things like music and songs. In other areas, such as payment Apple Pay be the understanding there will be research and development and the Council, but he intended to develop the consultation as well as interaction with more stores and states to support their service. But with time automatically will save the user purchase by Apple devices; Apple don’t need to do as soon as additional you buy. All you need is just to publish the service to find them everywhere.

Center Juniper examined the defense system said that by 2020 will reach the number of users of pay phones to the 450 million people will make the Apple on half of the operations, the equivalent time of 150 million dollars.


Wealthy clients have Apple

The service sector believed that the user will buy or pay the amount at the point of recreation like clash of movies, music, and used his phone to buy from luxury stores; spend money in the acquisition of books and applications. These things are “entertainment” any need for someone who has the “luxury” of material and does not suffer from the priorities of the acquisition. And here comes the strength point of Apple. Customer pays 1000 $ to buy a phone, and another paid 2 to 10 thousand dollars to buy a Mac as well as pay hundreds of dollars to buy a headset. So house by competing Apple’s revenue from Services is simple. For example, in the game Pokemon Joe said to send that two-thirds of revenue comes from Apple. It is a non-Apple customers able to spend on these services. This is a point force Apple to have a customer base they have the strength of the material is high and thus the marketing of Apple to its services easier. While its competitors have 2 challenge where you have to do before Marketing a product and service that first attracted customers to this category for them.


Product is easily

Of things possible in the services they can expect at the moment; the availability of the application, movie, song or book can at the moment to stop for a half a million people in seconds. And will not suffer the apple of the problem of manufacturing in Foxconn crashes or virus hits the factory processors TSMC or forced to buy screens from its competitors the Samsung. We just need to build powerful servers and a huge team of developers to secure the services of as well as another team to deal with the banks and the state to provide services. But if the agreement ended up; don’t suffer in Shipping and the problems of customs and obstructions you need.


One last word

I don’t mean this article to work in the service sector, Apple is easy and requires no effort, of course, there is no revenue without effort but the services have the great advantage that it need effort less competition and less as well as not affected by the seasons and can grow at any time.

What do you think of the service sector in the Apple? Do you expect to continue to grow strong and continuing to?

Sources:

techcrunch | appleworld | Apple


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Cards: Apple, Apple pay

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