A Rocky Transition: Apple’s Expansion from Gadgets to Services Drive Investors Impatient
- Written by TechXO Team
- Category: Gadgets
- Hits: 39
Apple announced 4 new innovations in a well-attended event in Silicon Valley. Heads of multiple corporations were present to witness the new things Apple had planned for the future. However, with plans for a streaming service and other digital services not being fully fleshed out by the time Apple’s press event happened, investors of the tech giant are becoming impatient as to the future of the company.
A shroud of mystery surrounds Apple’s plans for new digital services. Details such as price and features remain unknown for Apple’s video streaming and gaming services, which is said to be available in the fall. Apple’s news subscription services seem to lack variety, with minimal news corporations signing up for a partnership. Even worse, there are rumors that the corporations that are partnering with Apple for their news subscription service may be withholding some content when the service goes live. Apple’s new credit card, a partnership with Goldman Sachs Group Inc. prove to have rewards and services similar to existing rivals who have a stronger supporter base.
Although these announcements and endeavors by Apple prove how serious they are in terms of providing services to users instead of just being gadget producers, they will find difficulty in trying to stand out in a sea that is already crowded by powerhouses such as Netflix and Hulu Plus. Not only does Apple have lesser capabilities in establishing itself around these giants, but it also has to fight the plethora of new streaming services that will be entering the market later in the year. This battle might prove to be difficult since Apple as a video streaming company is not something that sounds familiar to consumers. Without the right steps, Apple’s video streaming service may fade into obscurity, joining the ranks of other Apple products that did not quite make the cut.
Superior foundations and libraries
Apple does not have the library to back up its venture into the world of video streaming as well. In the past, the reason why Netflix and other video streaming platforms captured the hearts of millions of users was because they had access to old films and tv shows. Since Hollywood protocols have become stricter, Apple has to rely on their own original, homegrown content. This proves to be a challenge, as most users of video streaming platforms subscribe to watch their favorite shows. Discovery of new shows come as a bonus. If Apple is unable to attract consumers through their original content, consumers will find no reason to jump ship and transfer to Apple’s platform.
Sinking sales and questionable choices
With Apple’s shares dropping by 1.2 percent this week, investors are starting to question whether or not Apple will be able to pull itself back up from the continuous drop in consumer interest. The new ventures being done by Apple, while innovative, leaves consumers and investors alike with more questions than answers. With no concrete battleplan as to how Apple plans to stand out against Netflix, investors question whether it would be worth it to invest in Apple’s endeavors. Partner that with the lack of major media outlets in Apple’s newly released news subscriptions platform, and you would have Apple in a position that is difficult for them to climb out of.
Apple’s attempts to cater to and access multiple markets in the economy is great. However, with their lack of experience in multiple of these markets and their incapability to give vital details about their plans, will Apple be able to succeed and make a name for itself in the paid service industry, or will it flop and revert back to producing top-of-the-line smartphones? At this point, only time can tell.