Where does Apple make most of its money? Hardware. Apple is a hardware company. Yes, the Services segment is fastest growing– more revenue and profits than iPad or Mac, and growing faster than iPhone– but where would Services be without hardware sales?
Apple is a hardware company and hardware sales from major products are not growing. Sales for iPhone, Mac, iPad have plateaued in recent years, and the iPhone’s accessories– Beats headphones, Apple Music, Watch, AirPod– have yet to pick up the slack.
What products are sleeping in Apple’s product pipeline?
Apple’s iconic hardware unit growth is broadly over for now. … What has made the success of Apple, a concentrated portfolio of highly desirable (and pricy) products is now facing the reality of market saturation.
If hardware sales have stalled, and at Apple they have, then a hardware company needs new hardware. What does Apple have in the product pipeline?
Here is what is on my list:
Apple Glasses – put artificial reality into a pair of always connected glasses that act as a visual extension of iPhone– much the way Apple Watch is an extension of iPhone functionality– and Apple could have another hit. Or, just another accessory to iPhone (much the way Watch is a hit accessory, but not a hit product in the vein of iPhone, iPad, and Mac. Remember, Apple co-founder Steve Jobs was responsible for those hardware giants, while CEO Tim Cook is responsible for their accessories.
Apple Car – never say never and it’s never too late to do the right thing, but most futurists say semi-autonomous electric cars are the future, and the rest of us say Apple should have bought Tesla when it was affordable. Building a car platform from scratch is expensive and time consuming, and it seems as if Apple is working toward the software angle while vehicle manufacturers are going down the same road. What can Apple’s software do that others do not?
Apple Watch – Wait? What? Watch is already an Apple product and, thanks to heart rate monitoring, and the soon-to-be-released electrocardiogram function, seems to be doing well. As an accessory. What would Make Watch a hit hardware product that competes with iPhone, iPad, and Mac? Health. Or, rather, more health functionality that would entice a larger percentage of humanity to adopt Watch as the wearable device of choice. I’m thinking continuous blood glucose monitoring as the next generational function that would catapult Watch from accessory status to a must-have device.
Yes, it is likely that Apple has other products in the pipeline, but those, too, likely are little more than accessories for the hardware trio, or software services for the one billion customer base. Apple streaming TV and movies comes to mind, but competition is intense in those areas.
The problem Apple has with products that are sleeping in the pipeline should be obvious. They’re sleeping.