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Published on February 18th, 2019 | by Brad Gibson

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Apple shaking up strategy with stronger focus on its future streaming TV service

With iPhone sales slumping, Apple is redirecting much of its engineering resources to its soon-to-be-announced streaming TV service as it focuses its reliance away from the mobile phone market to its services-related business, according to a story Monday by the Wall Street Journal.

The Journal reports Apple has “trimmed 200 staffers from its autonomous-vehicle project, and is redirecting much of the engineering resources in its services business, led by Eddy Cue, into efforts around Hollywood programming.”

The reasons for the change in strategy? According to the report, “they reflect Apple’s efforts to transition from an iPhone-driven company into one where growth flows from services and potentially transformative technologies.”

iPhone sales fell over the 2018 holiday season, leading to many reports about Apple’s new plans to combat stagnating smartphone sales. Apple’s services business hit an all-time high in the first fiscal quarter of 2019, up 19 percent year-on-year. Apple’s services business brought in $10.9 billion in revenue in the period, including platforms including iTunes and many others.

Though the iPhone still contributes about two-thirds of Apple sales, the company has encouraged investors to focus on a growing services business.

Apple is spending more than $1 billion to create original shows this year starring Hollywood A-listers such as Reese Witherspoon. It has considered bundling video into a monthly subscription offering that would also include cloud storage, according to people familiar with the plans.

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About the Author

Brad is co-founder and editor-in-chief of BESTAppleTV.com. He has been a technology reporter since the late 1980s having previously worked for MacUser, MacFormat, and iCreate magazines, as well as MacNN.com, MacObserver.com, MacCentral.com, MacMinute.com, and Macworld.com. He hosted and produced the MacFormat This Week podcast for three years. He was also a reporter, editor, and producer for the Associated Press and United Press International.



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