For a long time there is a tendency to regularly pay for a service, compared to the purchase of this service or product. We see it in the subscription to television streaming services, or Apple Music, and more recently in the use of services such as Creative Cloud from Adobe or Microsoft 365.
This trend of subscription payment, which we use when we are interested and we can withdraw from the service when we are not interested, it raises the possibility of using and enjoying Apple products with the payment of a fee based on the value of the product. Thus, The company ensures that you will use the company's products for a long time.
Apple notices a cut in its income statement, in the periods of the year where there is no product presentation. So far, it compensates for this drop with the sale of services, among which we find the sale of applications, sale of books, movies and series, as well as the subscription to Apple Music, AppleCare and iCloud services. This part of the business is increasingly important, but it is not a definitive substitute, despite representing 13% of its revenues in 2017.
In the last presentation of results, Tim Cook himself, noted:
We are on track to meet our goal of doubling 2016 revenue from the Services business by 2020
Perhaps the definitive service for the company is to be able to offer a monthly payment for the Apple products that we need in our day to day. In this way, users can know the cost of having the Apple products that are necessary to satisfy our personal and professional needs. Further, This action would allow, after payment of the established agreement, the renewal of equipment automatically.
But at the same time, the company would have a stability of regular income, allowing it to achieve regularity. This stability would allow them to allocate resources to other areas, such as innovation and product development that continue to surprise us.