Currently, Apple is trying, by having lock in products, mainly iPhones, but also iPads to up sell its services business mainly via the App Store applications.
According to various sources, large part of the App Store revenue is from young people playing video games. This is actually great for Apple, since thus the company can forecast that the future generations will keep buying its hardware.
Apple, however, sooner or later will have to come up with a new hardware product. Services can provide an avenue for growth for up to 10 years.
For a large company to innovate, iterate is not very easy, but Apple sooner rather than later should take calculated risk, I think.
That said, Apple is a 2.59 trillion USD market capitalization company, one of the largest value creation events in human history.
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Disclaimer: The above blog post should is not a recommendation to buy or sell securities, neither a solicitation to buy or sell securities.
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