Apple stands tall as the largest publicly-traded company globally. But here’s the twist: it doesn’t cling to the “tech company” label. Instead, with their Keynote event in March 2019, Apple set a clear path towards a future akin to Disney, Netflix, and especially Amazon. Apple’s new journey is steering away from just being a hardware seller, transforming into a digital services heavyweight.
Early in 2019, CEO Tim Cook addressed a less-than-stellar quarter, pointing out the stagnation in Apple’s main moneymakers: smartphones, computers, and tablets. Although Apple hikes prices to buffer declines, there’s a limit to what consumers will shell out for an iPhone. While Apple isn’t about to abandon hardware, they recognize it’s no longer enough to keep them on the throne.
Apple’s plan? Expand into digital services—stepping into a space already crowded with names like Amazon. AppleCare, iCloud, and Apple Music showcase Apple’s initial steps, but Tim Cook aims for more. He looks to Amazon’s pioneering path with Prime, which evolved from a simple shipping deal to an all-encompassing service package.
Apple’s game-changing move could be its iPhone Upgrade Program, hinting at a future where owning a device turns into a seamless service. Envisioning an “Apple Prime,” one could get an iPhone plus a suite of Apple services all bundled into one neat package.
At the March event, Cook unveiled new services to make this vision more enticing. Apple TV+, with its original content, looks like a jab at Netflix and Disney+. But Apple TV+ has an edge: it doesn’t need to be immediately profitable. Being integrated into Apple’s 1.4 billion devices gives it a leg up on the competition.
Another clue pointing to Apple Prime is the introduction of the Apple Card. With no annual fees, late charges, and a lower interest rate, it’s designed more to lock users into the Apple ecosystem than to rake in profits. The seamless integration with Apple Pay makes switching away harder.
The formal announcement of Apple Prime is still under wraps, but the essentials are all aligning. With revenues from services steadily rising, it’s only a matter of time before Apple redefines itself for a new era.