Apple’s Brilliant Plan To Rip Off Companies Instead

It’s no secret that iPhone sales have been stagnating for quite some time now and it’s not surprising why. The differences between each generation are becoming smaller and smaller and smartphones reach their peak form. At first, Apple was trying to fight against this issue by increasing the prices of their phones but more recently they’ve switched to a completely different strategy. Instead of trying to monetize the purchase of the phone and maximize profit margins, Apple has shifted its focus to trying to monetize the use of the phone. While iPhone sales have been on a decline, iPhone’s market share has actually been on an incline as more and more Android users have been switching to iPhone. As such, Apple has of course been focusing on selling accessories, locking people into the Apple ecosystem, and selling services. But, likely their smartest mode of monetization is backend monetization. By heavily limiting access to iPhone users to external companies, Apple has essentially forced other companies to go through Apple if they wanna reach iPhone users whether that’s Google for search or Facebook for ads. This video explains Apple’s brilliant monetization strategy and how they plan to outlive the stagnation of the iPhone. 

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Timestamps:
0:00 - $20 Billion
2:20 - iPhone Dependency
5:43 - Monetize Monetize Monetize
9:07 - The Walled Garden

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