Apple has always been an evolving company. While it never really invented any product categories, it always seemed to make those product categories work better and smarter. It also found a way to make us want them, even when they were more expensive. Today, the WSJ reports, Apple is trying to find its way to a future without the iPhone at the center of its revenue model.
This shift happens as Apple reported lower revenue for the first time in years against a backdrop of flagging iPhone demand. Part of the problem is a shifting Chinese market, but it’s also due to people simply taking longer to refresh their phones. As that happens, and the price of iPhones soared to more than $1,000, there has been a decline in sales.
With iPhone sales down 15 percent, this was not a typical Apple earnings report, but it was something the company had anticipated when it announced lower Q1 guidance at the beginning of the year. If The Wall Street Journal story is accurate, Apple is already trying to take steps to move the company into its next phase, possibly as a services business.