Apple CEO hints at more cross-platform services, says iPad revenue will rebound by year's end

AppleInsider · February 4, 2016 9:10PM

Speaking at a recent internal "town hall" event, Apple CEO Tim Cook hinted that services beyond Apple Music might soon make the leap to additional platforms, like Android.

The Apple Music Android app is currently testing the prospect of growing services through new platforms, 9to5Mac reported, citing sources who heard Cook at the gathering. One of the main goals of the app was initially to avoid losing subscribers to Beats Music, which Apple Music is based on. Apple acquired Beats for $3 billion in 2014, and began transitioning customers shortly after Apple Music was launched in June 2015.

Android support also maximizes potential listenership, in light of the platform being more widespread than iOS. Apple could conceivably bring iTunes music, book, and/or video sales to Android, along with its rumored streaming TV offering.

Cook separately commented on the decline of the iPad, insisting that the product should return to revenue growth by the end of 2016. Sales have been on the decline for several quarters, driven by factors like the growing popularity of "phablets" like the iPhone 6s Plus, and slower upgrade cycles when compared with smartphones.

A third-generation iPad Air is expected to debut this spring, which could help reinvigorate sales with iPad Pro-like features including a Smart Connector and stereo speakers.

Cook addressed a number of other topics as well, noting that the first workers should be moving into Campus 2 by the end of January 2017. Apple employees are now also eligible for up to four weeks of paid leave if they need to take care of sick relatives, and the company's improved maternity and paternity benefits should be available in most countries outside the U.S.

COO Jeff Williams added that the company will soon announce that all of the smelted metals Apple uses are either conflict-free, or from partners presently being validated for conflict-free status.

Mr_Grey · February 4, 2016 9:21PM

iPad revenues will go back up because of the Apple Pencil. As they add it to the iPad Air (and eventually to the mini), people will be forced to buy a new iPad. Beyond that however, what are they going to do? That's just next year, and just a blip.

Apple really doesn't seem to have a clue in how to make the iPad market grow in the long term. Not only that, they seem to be moving in the wrong direction (with the noted exception of the Pencil).

Also, who really gives a rodent's behind about the super-rich Apple employees work benefits? Most of the employees at Apple (barring the retail ones) are millionaires already. They already have the kind of working conditions one would expect in Canada or Europe and are thus far above the rest of the American population already. Why should I as a customer of Apple care that they now have even more?

cali · February 4, 2016 9:26PM

Please don't share with iKnockoff users. This sounds terrible. Continue building your own ecosystem and reward those who pay for your products.

Apple is in a great [position because everyone is sharing with them and they have their own perks on top of that.

radarthekat · February 4, 2016 9:30PM

Mr_Grey said:

iPad revenues will go back up because of the Apple Pencil. As they add it to the iPad Air (and eventually to the mini), people will be forced to buy a new iPad. Beyond that however, what are they going to do? That's just next year, and just a blip.

Apple really doesn't seem to have a clue in how to make the iPad market grow in the long term. Not only that, they seem to be moving in the wrong direction (with the noted exception of the Pencil).

Also, who really gives a rodent's behind about the super-rich Apple employees work benefits? Most of the employees at Apple (barring the retail ones) are millionaires already. They already have the kind of working conditions one would expect in Canada or Europe and are thus far above the rest of the American population already. Why should I as a customer of Apple care that they now have even more?

This was an internal town hall. Cook wasn't talking to us, and so your query as to why you should care falls flat. Nobody was asking you to care.

anantksundaram · February 4, 2016 9:32PM

I hope that more cross-platform services -- e.g., all of iLife -- will be Apple's next big move. (But not MacOS).

I've been calling for it on these forums for many years now, and usually all I've got is pushback about Apple exclusivity and why it would not be a smart thing to do.

I think it'd be a very smart thing to do, since people will see what they're missing -- how much more organic the experience can be -- on the hardware front. It's the availability of the Apple ecosystem experience on Windows, especially iTunes combined with the iPod, that pushed people in droves to switch to Apple hardware.

anantksundaram · February 4, 2016 9:34PM

Mr_Grey said:

iPad revenues will go back up because of the Apple Pencil. As they add it to the iPad Air (and eventually to the mini), people will be forced to buy a new iPad. Beyond that however, what are they going to do? That's just next year, and just a blip.

Apple really doesn't seem to have a clue in how to make the iPad market grow in the long term. Not only that, they seem to be moving in the wrong direction (with the noted exception of the Pencil).

I think you're right about that.

The big problem with the iPads (from Apple's standpoint) is that they have been fantastically well-built and long-lived devices. Much more so than Jobs anticipated.

radarthekat · February 4, 2016 9:35PM

cali said:

Please don't share with iKnockoff users. This sounds terrible. Continue building your own ecosystem and reward those who pay for your products.

Apple is in a great [position because everyone is sharing with them and they have their own perks on top of that.

Bringing certain services to Android can be of great benefit to Apple. Apple Music on Android makes it easier for Android users to move to iOS, as its one less thing they will have to leave behind in the switch. Apple brough iTunes to PCs and the iPod, and iTunes sales, benefitted greatly from that. When a service represents something universal, like music, I think it doesn't make sense to segment it into our universe versus yours. Apple is judicious in its decisions about such things.

ireland · February 4, 2016 9:42PM

Cross-platform iMessage is a dream of mine. I want to use iMessage to contact every person I know along with its beatiful and generous selection of emoji.

I want to permanently delete Facebook Messenger, Kik, WhatsApp and JellySMS from my iPhone. iMessage on Android means I can iMessage everyone!

dementuschikan · February 4, 2016 10:06PM

The cross platform stuff is a good idea if it is done right. Unfortunately, previous ventures into the Windows front with iTunes, Quicktime, and Safari have fallen fairly flat. Part of the problem is Apple can't account for what systems will be, so the software tends to run slowly and the legions of Windows users badmouth the software, so it is rarely if ever used. (I use iTunes and Safari on a couple PCs with little to no issues, but that is definitely not the case for most.) A suspect Android with the wide variance in hardware and versions will see a similar issue. If they can get over that hump -- and I think it is a huge hump -- then Apple would do well to have multi-platform software.

thewhitefalcon · February 4, 2016 10:06PM

radarthekat said:

cali said:

Please don't share with iKnockoff users. This sounds terrible. Continue building your own ecosystem and reward those who pay for your products.

Apple is in a great [position because everyone is sharing with them and they have their own perks on top of that.

Bringing certain services to Android can be of great benefit to Apple. Apple Music on Android makes it easier for Android users to move to iOS, as its one less thing they will have to leave behind in the switch. Apple brough iTunes to PCs and the iPod, and iTunes sales, benefitted greatly from that. When a service represents something universal, like music, I think it doesn't make sense to segment it into our universe versus yours. Apple is judicious in its decisions about such things.

Apple Watch for Android makes sense, IMO. That'd really open up the market, and it would follow the path of the iPod.

volcan · February 4, 2016 10:11PM

anantksundaram said:

The big problem with the iPads (from Apple's standpoint) is that they have been fantastically well-built and long-lived devices. Much more so than Jobs anticipated.

They have much more longevity than I think many people expected, however, personally, I find I do not need a new iPad mostly because they are not very useful for me, so I'm content with my iPad 3. It has retina screen, browses the web and reads email, iMessage etc. just fine, which is all I need. I don't play games or watch video on it which might require a more powerful model. I have my iPhone for calls and music. My needs are pretty basic which are likely similar to many other casual iPad users who do not see the need to upgrade, hence sales are stagnating.

I was in the Apple Store yesterday and tried out the iPad Pro with Pencil. I did not find either very compelling, at least not for my use case scenario.

1983 · February 4, 2016 10:14PM

I wondered how long it would take for Apple in the Cook era to offer most of their services on other platforms. And it seems like its going to be sooner rather than later. I don't think Jobs would of liked the idea of all Apple services offered on other competing platforms (especially Android which he hated!) As for me I'm not sure it this is going to be a good thing or bad. On the one hand it gives Apple the potential to increase user base for its services. But on the other if all Apple services are available on other platforms, it might actually reduce hardware sales (which Apple depends on for most of its revenue) due to people not feeling the need to leave their (mostly Android) devices. And then there are those Android fanboys that would never use or own an Apple product on principle. And finally many of Apple's cloud services are still sub-par compared to the competition...so Android or Windows users who are still on the fence may try these Apple cloud services out and realise they're actually not so great, which could put them off switching to iOS and Apple products.

minglok50 · February 4, 2016 10:22PM

Mr_Grey said:

iPad revenues will go back up because of the Apple Pencil. As they add it to the iPad Air (and eventually to the mini), people will be forced to buy a new iPad. Beyond that however, what are they going to do? That's just next year, and just a blip.

Apple really doesn't seem to have a clue in how to make the iPad market grow in the long term. Not only that, they seem to be moving in the wrong direction (with the noted exception of the Pencil).

Also, who really gives a rodent's behind about the super-rich Apple employees work benefits? Most of the employees at Apple (barring the retail ones) are millionaires already. They already have the kind of working conditions one would expect in Canada or Europe and are thus far above the rest of the American population already. Why should I as a customer of Apple care that they now have even more?

There wouldn't be a market for tablets if it wasn't for the iPad

canukstorm · February 4, 2016 10:24PM

anantksundaram said:

I hope that more cross-platform services -- e.g., all of iLife -- will be Apple's next big move. (But not MacOS).

I've been calling for it on these forums for many years now, and usually all I've got is pushback about Apple exclusivity and why it would not be a smart thing to do.

I think it'd be a very smart thing to do, since people will see what they're missing -- how much more organic the experience can be -- on the hardware front. It's the availability of the Apple ecosystem experience on Windows, especially iTunes combined with the iPod, that pushed people in droves to switch to Apple hardware.

This is the same strategy MS is trying with its services & Windows Phone and that's not going so well for them, to the point where Windows Phone is hanging by a thread. I don't agree that being a pure play services company a la MS, Google, Facebook is the right way to go for Apple. That's not in their DNA. They need to emphasize tight integration of hardware + software + services and use services as a way to make their own platforms more desirable and monetize their user base.

canukstorm · February 4, 2016 10:27PM

Mr_Grey said:

iPad revenues will go back up because of the Apple Pencil. As they add it to the iPad Air (and eventually to the mini), people will be forced to buy a new iPad. Beyond that however, what are they going to do? That's just next year, and just a blip.

Apple really doesn't seem to have a clue in how to make the iPad market grow in the long term. Not only that, they seem to be moving in the wrong direction (with the noted exception of the Pencil).

Also, who really gives a rodent's behind about the super-rich Apple employees work benefits? Most of the employees at Apple (barring the retail ones) are millionaires already. They already have the kind of working conditions one would expect in Canada or Europe and are thus far above the rest of the American population already. Why should I as a customer of Apple care that they now have even more?

"Not only that, they seem to be moving in the wrong direction" - How so?

Not too long ago, in an interview with Steve Levy, Schiller outlined his theory for Apple's product line:

https://medium.com/backchannel/exclusive-why-apple-is-still-sweating-the-details-on-imac-531a95e50c91#.pccnqglwj

"“They are all computers,” he says. “Each one is offering computers something unique and each is made with a simple form that is pretty eternal. The job of the watch is to do more and more things on your wrist so that you don’t need to pick up your phone as often. The job of the phone is to do more and more things such that maybe you don’t need your iPad, and it should be always trying and striving to do that. The job of the iPad should be to be so powerful and capable that you never need a notebook. Like, Why do I need a notebook? I can add a keyboard! I can do all these things! The job of the notebook is to make it so you never need a desktop, right? It’s been doing this for a decade. So that leaves the poor desktop at the end of the line, What’s its job?”"

"“Its job is to challenge what we think a computer can do and do things that no computer has ever done before, be more and more powerful and capable so that we need a desktop because of its capabilities,” says Schiller. “Because if all it’s doing is competing with the notebook and being thinner and lighter, then it doesn’t need to be.”"

So if you want an idea on Apple's strategy regarding their product line, this is a good place to start.

kkerst · February 4, 2016 10:28PM

This is hardly going thermonuclear against Android. Anyway, this is Cook's Apple, not Jobs so if he wants a more collaborative environment, great. Designing more Android compatibility is ok, but it must be held at arm's length.

kkerst · February 4, 2016 10:32PM

ireland said:

Cross-platform iMessage is a dream of mine. I want to use iMessage to contact every person I know along with its beatiful and generous selection of emoji.

I want to permanently delete Facebook Messenger, Kik, WhatsApp and JellySMS from my iPhone. iMessage on Android means I can iMessage everyone!

Don't you think iMessage is a selling point of iOS/OS X? The very fact that is does not exist on other platforms is reason enough (for me) to never need Android. Designing iMessage would not create the lure and would just keep people from not switching to iOS in the first place. That's a slippery slope that has to be managed very carefully. There are cross platform messaging apps (what's app, Skype...the list goes on I'm sure) if that's what you want.

mazda 3s · February 4, 2016 10:32PM

cali said:

Continue building your own ecosystem and reward those who pay for your products.

How about giving us more than a measly 5GB of free iCloud storage (spread among multiple devices) for starters.

volcan · February 4, 2016 10:33PM

1983 said:

I wondered how long it would take for Apple in the Cook era to offer most of their services on other platforms. And it seems like its going to be sooner rather than later. I don't think Jobs would of liked the idea of all Apple services offered on other competing platforms (especially Android which he hated!)

When you think about it they already offer a lot of free cross-platform services because an Apple ID is all you need to access all iWork applications on iCloud using just a browser.

canukstorm · February 4, 2016 10:34PM

kkerst said:

ireland said:

Cross-platform iMessage is a dream of mine. I want to use iMessage to contact every person I know along with its beatiful and generous selection of emoji.

I want to permanently delete Facebook Messenger, Kik, WhatsApp and JellySMS from my iPhone. iMessage on Android means I can iMessage everyone!

Don't you think iMessage is a selling point of iOS/OS X? The very fact that is does not exist on other platforms is reason enough (for me) to never need Android. Designing iMessage would not create the lure and would just keep people from not switching to iOS in the first place. That's a slippery slope that has to be managed very carefully. There are cross platform messaging apps (what's app, Skype...the list goes on I'm sure) if that's what you want.

"That's a slippery slope that has to be managed very carefully. "

Agreed.

cali · February 4, 2016 10:42PM

radarthekat said:

cali said:

Please don't share with iKnockoff users. This sounds terrible. Continue building your own ecosystem and reward those who pay for your products.

Apple is in a great [position because everyone is sharing with them and they have their own perks on top of that.

Bringing certain services to Android can be of great benefit to Apple. Apple Music on Android makes it easier for Android users to move to iOS, as its one less thing they will have to leave behind in the switch. Apple brough iTunes to PCs and the iPod, and iTunes sales, benefitted greatly from that. When a service represents something universal, like music, I think it doesn't make sense to segment it into our universe versus yours. Apple is judicious in its decisions about such things.

Funny because of this news this is the FIRST time in my life I've considered buying an Android device(I HATE Android). The iPod comparison makes little sense. You didn't need iTunes on Zune for people to switch to iPod. I don't get the logic at all.

Why should I buy an iPhone now if I can get the whole ecosystem on a $50 competitors phone? This is literally the FIRST time I've ever thought of replacing my iPhone with a cheap knockoff. Pretty scary really.

anantksundaram said:

I hope that more cross-platform services -- e.g., all of iLife -- will be Apple's next big move. (But not MacOS).

I've been calling for it on these forums for many years now, and usually all I've got is pushback about Apple exclusivity and why it would not be a smart thing to do.

I think it'd be a very smart thing to do, since people will see what they're missing -- how much more organic the experience can be -- on the hardware front. It's the availability of the Apple ecosystem experience on Windows, especially iTunes combined with the iPod, that pushed people in droves to switch to Apple hardware.

If my cheap $50 iPhoney can run REAL ORIGINAL iPhone software then I'm not missing anything. Hell Apple just made my knockoff device 100x more valuable.

canukstorm said:

anantksundaram said:

I hope that more cross-platform services -- e.g., all of iLife -- will be Apple's next big move. (But not MacOS).

I've been calling for it on these forums for many years now, and usually all I've got is pushback about Apple exclusivity and why it would not be a smart thing to do.

I think it'd be a very smart thing to do, since people will see what they're missing -- how much more organic the experience can be -- on the hardware front. It's the availability of the Apple ecosystem experience on Windows, especially iTunes combined with the iPod, that pushed people in droves to switch to Apple hardware.

This is the same strategy MS is trying with its services & Windows Phone and that's not going so well for them, to the point where Windows Phone is hanging by a thread. I don't agree that being a pure play services company a la MS, Google, Facebook is the right way to go for Apple. That's not in their DNA. They need to emphasize tight integration of hardware + software + services and use services as a way to make their own platforms more desirable and monetize their user base.

EXACTLY. Why should Apple give me reasons to buy a cheap 'droid? If this comes to fruition I'm switching to android.... and this is the only reason why.

Apple CEO hints at more cross-platform services, says iPad revenue will rebound by year's end

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