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BLOG: The key challenge for Apple

Jan Dawson, chief telecoms analyst at Ovum | Sept. 10, 2013
Apple needs to demonstrate in the coming months that it has other product lines which can start to make up for slowing growth and falling margins in iPhone and iPad.

We're not going to see such a product at the iPhone event, but Apple needs to demonstrate in the coming months that it has other product lines which can start to make up for slowing growth and falling margins in iPhone and iPad. That's a tall order, because both the iPhone and iPad generate US$400-US$600 in revenue per unit, and sell tens of millions per quarter. A smart watch or even a revamped Apple TV are unlikely to generate anything close to those sorts of numbers, and that's a problem Apple will have to work hard to overcome.

 

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