Tim Cook: New services coming to Apple in 2019

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Tim Cook
Unsurprisingly, he won't spill the beans on what they are.
Photo: Apple

Tim Cook teased new services that will be coming to Apple users this year. Responding to questions about falling iPhone sales during a CNBC interview, Cook stressed the way that Apple’s services division has grown significantly in the past several years.

“The services are on a tear,” Cook said. “On services, you will see us announce new services this year. There will more things coming.”

Unsurprisingly, Cook played coy with the details. “I don’t want to tell you about what they are,” he said.

However, a few clues could reveal what new services Apple plans to roll out in 2019.

First and foremost is Apple’s original TV content. The company supposedly spent more than $1 billion on shows so far, but has yet to take the wraps off its supposed streaming video service. Featuring some big names both in front of, and behind, the camera, these (reportedly family-friendly) original TV series represent Apple’s attempt to challenge Netflix.

Apple hasn’t revealed how it will distribute these shows, but the rumor mill suggests the company could give them away. Thanks to new deals with TV manufacturers, they should also be easier to access than ever.

Second is Apple’s rumored magazine subscription service. Based on Texture, the $9.99-a-month magazine service Apple purchased last March, this would be a paid magazine and newspaper subscription service that could serve as a premium part of the existing Apple News app. Bloomberg predicts Apple will launch the subscription news service as soon as spring 2019.

Will Apple services make up for slowing iPhone sales?

Ultimately, the big question (at least from an investor’s standpoint) is whether these new offerings will be able to make up for any iPhone-related dip in revenue. Given that the iPhone brings in upward of 60 percent of Apple’s revenue, this seems impossible for the immediate term.

However, Cook was keen to stress to CNBC‘s Jim Cramer that services are just one part of a non-iPhone revenue stream that Apple is currently enjoying.

“If you sort of back up and look at Apple, in our last fiscal year, we had $100 billion of revenue that was not iPhone,” Cook said. “$100 billion. And in this last quarter, if you take everything outside of iPhone, it grew at 19 percent. 19 percent on a huge business.”

Source: CNBC