On Monday, popular analyst Mark Gurman advised investors to not expect another product like Apple Inc.'s AAPL iPhone. Instead, they should look forward to a series of smaller, yet profitable ventures.
What Happened: In a segment on Bloomberg TV this Monday, Gurman said that the iPhone remains Apple’s core product, generating over half of the company's revenue.
It also drives sales of other products like AirPods, and Apple Watches, apart from services such as AppleCare, forming the foundation of Apple's ecosystem
"There will never be another Apple product like the iPhone, something that sits at the center of the company and generates half of the revenue from a hardware standpoint and the other half from an attachment and services standpoint," he said.
He then suggested that Apple is focusing on smaller growth areas that could generate $20-50 billion annually for investors.
The tech giant is investing in mixed and augmented reality, expanded AirPods features leveraging AI, home robotics, home energy, and monetizing health products through subscriptions.
Apple is also entering the smart home market in 2025 with new smart home displays. After that, Cupertino may also release a smart display with a robotic lid.
Why It Matters: On Monday, supply chain analyst Ming-Chi Kuo reported that Apple plans to enter the smart home IP camera market in 2026.
He said that the tech giant aims for “tens of millions” of annual shipments, integrating the device with other Apple products.
Cupertino's financial performance has also been strong, with Apple beating analyst estimates on the top and bottom lines for seven consecutive quarters.
Last month, Apple reported fourth-quarter revenue of $94.9 billion, surpassing analyst predictions of $94.56 billion.
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Photo courtesy: Apple
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