Apple Could Fail Where Microsoft Succeeded, Analyst Warns
Apple has been pushing hard for an ecosystem that doesn’t solely rely on the iPhone, and more recently, the Cupertino-based tech giant has been insisting more for services.
Apple isn’t yet a services company, but it does want to become one, and analysts warn that heading in this direction is a risky decision going forward.
Andy Hargreaves of Keybanc Capital Markets explains in a note to clients obtained by CNBC that a services company needs to rely above everything on how much money it makes per user.
“If we are to call Apple a services company, we should evaluate it on typical services metrics of user growth and revenue and profit per user,” the analyst explains. “Apple’s user growth is decelerating due to market saturation and its gross profit per user has been declining. These are not particularly attractive metrics for a servic… (read more)