Comment by cromka
2 days ago
> Apple is a digital services company that happens to sell hardware.
That's just your made up opinion, completely not supported by their financials.
2 days ago
> Apple is a digital services company that happens to sell hardware.
That's just your made up opinion, completely not supported by their financials.
I think Apple sees the writing on the wall with hardware feature increases and hardware longevity.
Sell a phone that is good for a few years, or get sell a phone and also get monthly 100% margin payments indefinitely? Given that phones are going to be useful for longer and longer periods, the replacement/upgrade cycle is definitely going to slow. They’re running out of compelling reasons you MUST have the new phone, falling back on dumb shit like making it stupid colors so you can wield it like a $1400 status symbol. It already does all of the camera and video stuff any normal person could ever ask for, which was previously the main way of differentiating smartphones.
I wouldn’t be surprised if the internal mandate/goal is equal services profit to hardware profit. It is a LOT cheaper and easier to vibe code new services than to design and build new features into the best phone in the world that has already been aggressively iterated on for two decades. Additionally, new signups are all profit as the marginal cost of additional subscribers is zero. Apple’s future is in subscriptions, that’s clear.
Are they there now? No. Does almost every single product decision they have made in the last 10 years point to this future? Absolutely. This “sign up pretty please” user-hostile bullshit (which now everywhere in all products, or nudged toward by all products) is the most un-Apple thing that I have ever witnessed in my 30+ years spent watching hawk-eyed at every single product, accessory, product variation, and service they have ever released.
I sometimes wonder if Jobs would have reached the same conclusion and pulled the company into the same direction in service of profitmaxxing vs spending the company’s time and resources producing and selling things that are insanely great. Can you name one Apple service that is insanely great? (iMessage’s uptime comes to mind, but that doesn’t directly generate subscriptions, and certainly doesn’t generate a single shred of the unalloyed glee in customers that was the characteristic phenomenon that originally put Apple on the map for decades.)
(Unrelated to this topic, the closest I get to that feeling anymore mostly gets caused by DJI and Anker.)