For years Apple has been the poster child of tech success. Not only have they pioneered cutting-edge hardware, but they have redefined our relationship with music, gaming, and communication. Unlike many of their competitors, they have not nailed themselves into one horizontal niche. Instead, their success has been in the vertical nature of the business. Customers who use Apple products tend to use products are every level, from computers and phones to email, storage, word processing suites, and e-wallet.
However, Apple faces stiff market competition. This is not news. For years competitors have been trying to unseat Apple from its position as the premier tech brand. In the early years, Apple was niche and not seen as a threat to the computer manufacturers or software giants. Only creatives used Macs, allegedly.
In 1997, Steve Jobs delivered an inspirational speech about the future of Apple, and the world woke up to the vision. At this point, Microsoft invested $150 million in the company. By 1998, the Apple iMac and Powerbook G3 were increasing the popularity of the brand, and the company was hugely profitable.
In 2001 Apple officially became a big company. That was the year it released the iPod. With a 5GB hard drive, it could hold one thousand songs. Then came the iTunes Store. When Intel Chips were integrated into iMacs and MacBook Pros in 2005, Apple’s machines could run Windows software. Apple Computer Inc. became Apple Inc in 2007 to coincide with the launch of the iPhone and then the iPad. The rest, as they say, is history on the hardware side.
Probably the most significant development of recent years has been Apple’s entry into the world of banking and finance. ApplePay has allowed customers to ditch their physical wallets and payment cards. Instead, the Wallet facility gives users full access to various financial products. As well as offering a contactless solution when paying in physical stores, ApplePay is a fully integrated online payment solution.
Wherever people are paying online, they usually have the option to select ApplePay, which can be linked to a range of bank cards and accounts. So whether paying for the latest fashion, booking a holiday, or placing a bet at a casino, for many people, this is their preferred payment option. For those who enjoy a flutter, a quick look on Time2Play will bring up a comprehensive list of the best ApplePay casinos.
ApplePay has also recently launched a new feature to bring it into line with many of the other fintech payment solutions. It is the latest major platform to offer customers a Buy Now Pay Later scheme. Using Apple Pay in 4, customers can split purchases into four payments without incurring interest or fees. The total amount is repayable within six weeks.
Apple has said that loans of between $50 and $1000 could be applied for online or through the Apple Store. The loans can be used for online and in-app purchases when the purchase is made using iPhone or iPad. A selected group of users have been invited to access the pre-release version. Apple indicated that it would be available to all eligible users in the coming months.
The company must hope that constant innovation will continue to bring success. Apple Pay in 4 is unusual in that it sees Apple as a follower and not a leader. This form of payment was pioneered by today’s upstarts like Klarna, and even yesterday’s upstarts, PayPal had to run to keep up. Unusually for them, Apple is late to this opportunity. However, it will be interesting to see where it takes the business.
In 2022 Apple’s stock declined nearly 30% as investors were troubled by supply chain issues in China. In addition, there is still little clarity about where the company will go next. iPhone generates 52% of the company’s revenue. However, even withthe latest launches and camera upgrades, there is nothing so remarkable about the gadget anymore. Is there anything radical left to develop that will make people sit up and say, WOW?
It may not need anything revolutionary for the company to continue to expand. Instead, stability could be the answer. Some of its production has been switched to Vietnam and India, meaning it is not so reliant on China. It also plans to source iPhone and Mac chips from Taiwan Semiconductor Manufacturing’s new facility in Arizona. These changes will not come to fruition until 2024 at the earliest, but they will help to spread the supply chain base.
Subscriptions will continue to be of great importance to Apple’s growth. The value of these has grown from $745 million in 2021 to $900 million in 2022. Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, and other digital services are going head to head with Spotify, Netflix, Amazon, and Peleton to offset slower hardware sales.
Apple is still a cash-rich company – this should not be underestimated. In 2022 it had cash and marketable securities to the value of $169 billion. Its next move could be to buy a media or video game company to extend the services ecosystem it has on offer. It is probable that its next move could be to grow by acquisition rather than a ground-level start-up. On this occasion, they may not need to reinvent the wheel but bring a burgeoning AI or metaverse business into the fold.