Apple is missing out on billions of dollars by skirting the hottest trend in software

Apple is missing out on billions of dollars by skirting the hottest trend in software

Apple still makes the bulk of its money selling iPhones. But in trying to show investors that it can thrive in high-margin software, the company has built a services unit that’s now approaching $40 billion in annual revenue. But it’s leaving money on the table by failing to embrace the biggest trend in the software industry: subscriptions

Salesforce, Workday and ServiceNow in enterprise software and Netflix and Spotify in the consumer world. But unlike those companies and older software vendors such as Adobe and Microsoft, which have migrated to the cloud in recent years, Apple hasn’t fully embraced subscription software.

Apple has a suite of products called Pro Apps, used primarily by audio and visual professionals, that customers buy and download onto their local hard drives — the way software worked in the pre-cloud days. Users of Mac computers go to the App Store to purchase Final Cut Pro, Logic Pro X, Motion, Compressor and MainStage 3. They each have separate prices — Final Cut Pro X costs $300 — and the whole package costs $630.

Those are all products that Apple could conceivably host in the cloud and charge monthly subscriptions to use (Apple Music, for example, costs $10 a month for unlimited streaming). The model, known in the technology world as software as a service, provides less revenue up front but potentially much more over time if customers see the value and renew annually. Last year Apple said Final Cut Pro X had 2 million users, but none are paying for the video production software on a recurring basis.

Report: Apple in deal with Volkswagen for self-driving shuttle effort

Report: Apple in deal with Volkswagen for self-driving shuttle effort

The New York Times reported Wednesday that Apple has signed a deal with Volkswagen to supply vans that the iPhone maker would use to create a self-driving shuttle for employees.

The bottom line: While not in the fast lane, Apple’s self-driving car effort is apparently chugging along. Apple has gotten permits to test autonomous vehicles in California.

Apple co-founder: Maybe time to break up tech giants

Apple co-founder: Maybe time to break up tech giants

Apple co-founder Steve Wozniak thinks that it may be time for regulators to consider breaking up large tech companies, according to an interview with Business Insider.

Why it matters: Wozniak hasn’t been with Apple for decades, but remains a well-respected voice in the tech community.

Apple may land in North Carolina, not Northern Virginia

Apple may land in North Carolina, not Northern Virginia

Although a Washington Post story suggested Apple was eyeing Northern Virginia for a new campus, another report (from WRAL) says a move to North Carolina is already “a done deal.”

What’s next?: The only remaining hurdle for closing on the Research Triangle Park location, according to the report, was for state legislators to pass some tax breaks as an incentive for Apple.

Apple CEO Tim Cook says he told Trump China tariffs were the wrong policy and tried to show him why

Apple CEO Tim Cook says he told Trump China tariffs were the wrong policy and tried to show him why

President Donald Trump, right, speaks as Tim Cook, chief executive officer of Apple Inc., listens during the American Technology Council roundtable hosted at the White House in Washington, D.C.










Zach Gibson | Bloomberg | Getty Images

President Donald Trump, right, speaks as Tim Cook, chief executive officer of Apple Inc., listens during the American Technology Council roundtable hosted at the White House in Washington, D.C.

Apple CEO Tim Cook is not a fan of President Donald Trump’s trade policy with China.

The technology executive shared what he told Trump in a recent meeting at the White House.

“I talked about trade and the importance of trade, and how I felt that two countries trading together make the pie larger,” Cook said during an interview with Carlyle Group co-founder David Rubenstein in a clip that aired Tuesday on Bloomberg Television.

“I felt that tariffs were not the right approach there. I showed him [Trump] some analytical kind of things to demonstrate why,” Cook added.

Cook admitted free trade does hurt certain segments of society.

“It is undoubtedly true that not everyone has been advantaged from that in either country. We’ve got to work on that,” he said.

The full interview will air next month on the “The David Rubenstein Show: Peer-to-Peer Conversations” Bloomberg Television show.

Watch the Bloomberg Television interview segment with Tim Cook here