It’s even collaborated with major rivals on standards like the Matter smart home tech framework.Īll of this is about the company hedging against a future where the iPhone is no longer the hugely influential product that it is right now–a certainty over a long enough timeframe, even if it’s impossible to know when–or if Apple’s next big thing, whatever it is, doesn’t go the distance. AirPlay has been licensed out to third-party speakers and TVs. Daniel Romero/UnsplashĮven if Apple hasn’t quite yet adopted Microsoft’s “everyone’s best friend” strategy, it’s not hard to see that it’s made overtures in that direction: Apple Music and Apple TV+ are both available on tons of platforms now, including those made by some of the company’s biggest competitors. It’s hard to fathom, but there will be a time in the future when the iPhone will not be Apple’s number one revenue generator. Yes, the iPhone still accounts for roughly half of the company’s revenue (as of the most recent quarterly report), but Services is around 25 percent, which could soon be bigger than its remaining three categories (Mac, iPad, and Wearables) combined. That’s why the company has made such a big shift into services over the last decade. Just because you’re on top right now doesn’t mean you’ll be on top forever better to control your own evolution than have it forced on you. Though this decision might seem out of character for Apple, the reasoning behind it is straightforward: the company saw what happened to some of its biggest rivals. This comes several years after it rolled up its first attempt at creating an advertising system, iAd, which tanked rather unceremoniously. How does this all come back to Apple? Recently there have been a few stories about the company starting to beef up its advertising business, with the possibility of ads on Apple TV+ as well as elsewhere in Apple’s ecosystem. But Microsoft has seen the writing on the wall that tells it that you can’t count on being the biggest fish forever, and sometimes you’re better off making yourself an indispensable part of the landscape. It’s a fascinating evolution for a company that still controls key parts of our everyday technology experience, from consumer apps like Word and Excel to underlying technologies like Azure. Microsoft has also made the move to grow its service offerings.
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