Apple Boosted by Streaming Services Despite Lockdown
With new technology coming into the scene, China is more interested in Apple streaming services than iPhones as it records the highest growth during the lockdown beating all expectations.
Technology is an ever-changing subject and it evolves at such a speed that it becomes difficult to predict how it will change the trends. The coronavirus lockdown has people and organizations to think in a new way to re-establish them.
New Things Happening for Apple
Apple is the biggest example of seeing major changes. The firm saw growth and development in the first quarter of 2020 regardless of the deals of Apple devices falling unexpectedly in China due to the COVID-19 lockdown. But it was compensated by the increase in the demand for the streaming services. Apple CEO Tim Cook said the firm observed the ‘Streaming Services Creating a Record’ and ‘Exceptional’ growth for the online store.
Top Trends in Technology in 2020
2020 will be important for all of us because we are going to see some transformational changes in technology this year. How will some of the trending technologies of 2020 impact our lives and change them forever? Here is the answer:
- The use of Artificial Intelligence will increase.
- Practical Deployment of 5G.
- The extensive use of Virtual and Augmented Reality.
- Increase in the use of Cyber Security.
- Autonomous technology for driving.
- The demand for edge computing process.
- Aerospace technologies.
- Use of Blockchain in organizations and companies.
- Robotics will be on another level.
- Evolution of agricultural technologies.
- Evolution of technologies in the health sector.
How Deals Changed for Apple?
There has been a major shift in the deals with iPhones and other devices from Apple. In 2019, the Apple iPhone sales were approximately $31 billion. But this year, the deals fell by 7.2% and came down to $28.9 billion. On the other hand, if you take the streaming services and devices into consideration, it reached up to $58.3 billion this year from $58bn that was seen at the same time as that in 2019 beating expectations of $54.5 billion. During February and March, the iPhone sales decreased significantly in China, an important market for Apple, because of the productions being shut due to the lockdown. It is though Tim Cook said ‘China is in the Right Track’.
How Sale of Apple Devices Ascended?
The best thing or spot for Apple this year has been its administrations which developed approximately 17% in 12 months. Individuals invested more in their mobiles, but they did not iPhones, but services because they spent more time in their homes looking into the screens. They started spending more money on membership administrations like:
- Apple Store
- Apple Music
- Apple Arcade
People always look for new ways to get entertained and these services of Apple have helped them to stay indoors and enjoy the services. Sophie Lund-Yates who works at Hargreaves Lansdown as a value examiner and equity analyst indicated that the climb in the popularity of Apple administrations and wearables can be considered as an empowerment for the firm amidst the ongoing dull deals development for iPhones. She also said that though the administrations and wearables are being talked about, Apple is an equipment-based business and the conditions were not very favorable before the lockdown.
How Technology Influenced Apple Users?
Apple has been able to balance its mobile deals with streaming services. The wearables, home, and accessories division produce Airpods and Apple Watches for the firm. The production increased during the lockdown by 22.5% to reach $6.3 billion. Apple TV+ and Apple Music got the maximum number of memberships during that time and it increased by 16.6% to reach $13.3 billion like-for-like.
Impact of the New iPhone SE on Market
Sophie Lund-Yates also praised the decision of launching the new iPhone SE at half the price of some of the other models. She said it is the best decision taken by Apple to launch this phone in the market when the sales growth for iPhones is dreary. This is a decent method to convince consumers to upgrade during the COVID-19 lockdown. This is the best time for them to get their hands on the new iPhone SE and start using streaming services.
The Position of Apple
Despite the business being down in China and it has not yet bounced back, Apple ManagerTim Cook said that all the stores in the country had reopened and revived by mid-March and the deals showed improvement too. The firm saw an overall gain of $33.5 billion that rose by 6.2% for half the year finishing on 28th March 2020 from $25.9 billion at the same time in the previous year.
How Streaming Services are Changing Our Lives?
Technology is at the center of the entertainment industry. With the advent of new technology and recent developments, companies are somewhat forced to change the way of producing, broadcasting, and distributing content. As people are getting accustomed to more and more devices like iPhones and iPods, streaming services are becoming common for them. Apple saw a spike in its streaming services during the lockdown as a means of at-home entertainment. You can watch television, movies, and also listen to music with the services. The streaming services for Apple phones are:
- Apple Music
- Amazon Music
- YouTube Red
- Showbox for watching movies
- Sling TV
For Television Shows
- Apple TV+
- Acorn TV
It is difficult to forecast how the ending of the year will be for a company like Apple by just seeing the income in the first quarter. However, Apple Boss is confident that they will be able to reach the peak as you cannot say how a book is going to end by reading some chapters. But there will not be an issue with any forecast for the next quarter because of the ongoing lockdown. According to Yoram Wurmser, Principal Analyst at eMarketer, a research firm said the performance of Apple in the first quarter is ‘quite solid’ because it is impressive to see a growth of 1% in this situation.