As iPhone sales dwindle, Apple moves its focus from hardware to services for revenue: Report

After what appeared to be a profitable yet disappointing quarter for Apple, analysts have begun noticing how the tech giant now relies more on services for revenue than iPhone sales.

Apple logo. Reuters.

Apple logo. Reuters.

With Apple's Q1 2018 financial results revealing dwindling with year on year iPhone sales, the focus on services may have already begun.

A report by 9to5Mac reveals a new analyst note by UBS, which reveals some of the challenges faced by the Cupertino giant as it reaches maturity.

UBS claims that while Apple's dependency on services for revenue is noticeable, it is the predictability of the company's performance that seems to be decreasing.

There are many questions about Apple's hardware decisions (pricing, volume, product cycles) and UBS finds it even more confusing to figure out whether there is an overall decline in the market or is it just Apple who is struggling to deliver something new and unique to its customers.

While the future with iPhone looks a bit grim, it's hard not to ignore, the active install base (reaches 1.3 billion in January), customer loyalty and Apple's leadership in the wearables market that paints a pretty picture for investors.

Updated Date: Feb 06, 2018 10:04 AM