Tuesday's Market Minute: Apple Doubles Down On Services

Apple Inc (NASDAQ: AAPL) introduced its iOS 14 yesterday and unveiled several features that Apple customers could look forward to—and possibly convert some new users. Analysts have been saying that Apple is transitioning into a services-based company for some time now, but this is a good example of Apple’s renewed focus on user experience. In addition to a redesigned home screen giving the user and Apple more ability to personalize through smart technology, it announced an updated Safari Browser and updated Messages app. Although Apple likes to keep its users within its ecosystem, it is also bringing in companies that Microsoft Corporation (NASDAQ: MSFT) Windows users are familiar with: Microsoft will be bringing its Office suite to Mac, and Adobe Inc (NASDAQ: ADBE) its Creative Cloud. Internally, Apple is transitioning away from its Intel partnership, bringing the silicon architecture for its Macs in-house. Going forward, one of the more difficult things the company may face is the upgrade cycle and its high price point compared to other brands. The more Apple can make its internal ecosystem seamless, offering services users can’t give up, the more customers will stick with them for new features—starting a new cycle.