In its quarterly earnings report on Thursday, Apple gave the first update in two years on what it calls its active installed base, the number of major products such as iPhones, iPads and Macs in use in the world. Apple said the base expanded 30 percent from two years ago to 1.3 billion.
That increase should have been seen as positive because Apple aims to become less dependent on selling iPhones and shift to selling its existing customers services like Apple Music or add-on devices like the Apple Watch or AirPods.
But analysts voiced skepticism. Apple’s best-selling product, the iPhone, has seen relatively flat unit sales over the same two-year period. On Apple’s earnings conference call, Bernstein analyst Toni Sacconaghi said that the combination of trends implies users are hanging on to their devices longer, and he asked Apple Chief Executive Officer Tim Cook whether investors should be worried about that.
Cook responded that it was up to investors to decide what to focus on, but said he was comfortable with customers buying used iPhones.
When customers sell their old iPhone for a new one, the old iPhone “winds up with another customer somewhere else that is perfectly fine with having a previously owned iPhone. And so I view all of that to be incredibly positive. It’s more people on iPhones, the better,” Cook said.
Laura Martin of Needham & Co. pressed Cook on whether the larger device base meant more devices per user, or more users — an important question, because a user with both an iPad and iPhone is likely to only purchase one Apple Music subscription, for example.
Cook said “there are many, many, many more” Apple users than two years ago but declined to give an actual figure.
The signals on how well Apple is monetizing users were mixed. Sales of its “wearable” accessories — Beats headphones, AirPods and the Apple Watch — were up 70 percent year-over-year in the fiscal first quarter ended December 30. But services revenue — which includes Apple Music, iCloud and the App Store — fell short of analysts’ expectations for the December quarter, at $8.4 billion, and was down slightly from the previous quarter.
Apple has yet to disclose plans for how it will distribute the television shows in which it has been investing in recent months, which could become a large business.
“They’ve been building up the services business for several years, knowing full well that at some point the gravy train on smart phones is going to end,” said Bob O’Donnell, head of Technalysis Research.
Apple’s user base grows, but analysts probe for more detail
Apple’s user base grows, but analysts probe for more detail
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
