Cupertino giant Apple Inc. (NASDAQ:AAPL) has been known for its iPhone legacy, but now it seems that the $642 billion company is undergoing an identity shift. The 32-year-old company’s services segment has witnessed phenomenal growth in recent times, and it is expected to make higher contributions to the bottom-line than any other product. Steve Jobs' founded company is once again in the limelight as analysts and fans are wondering about Apple’s “Next Big Thing.”
There are a lot of products that can be an addition to Apple’s product portfolio, among which, the rumored Apple car and VR glasses are the most prominent. Smart Stock News has observed that CEO Tim Cook has paid a lot of attention to the services division lately, making it the second biggest segment of the company while overtaking computers and iPads.
The company’s recent move into digital media is another reason that highlights the company’s concern for this segment. Web TV services are considered to be the future trend as more and more players such as Amazon make their way into this space.
From a financial perspective, the services division also offers higher margins that can aid to the profitability numbers in future. This, in comparison to other prospects such as automobile manufacturing, can be very lucrative, as a lot of capital investment with higher payback periods may not be a good idea.
Going forward, investors should not confine Apple’s performance to iPhone only as there are a lot of other positive developments on the way. Investment conditions are conducive for investment due to a number of factors such as a decrease in short interest, growing confidence of sell-side firms, and less volatility in the options market. Furthermore, bull dominance in pre-market trading brightens the prospect for near-term gains. SSN maintains a bullish stance on Apple.