Apple's Future Growth: Innovations Beyond the iPhone

Apple's future growth relies on expanding into smart home technology and innovative accessories beyond the iPhone.

### The Future of Apple: Beyond the iPhone and into New Markets
* 📱 The iPhone continues to be a cornerstone for Apple, generating **over half of the company's revenue** and driving sales for other products in the Apple ecosystem.
* 💡 Investors must recognize that there will not be another product like the iPhone, which uniquely combines **hardware revenue with service revenue**.
* 🔍 Apple is exploring new avenues for growth, including **augmented reality glasses**, enhanced AirPods with **AI capabilities**, and home robotics, aiming to create **several smaller, profitable businesses**.
* 🏠 A significant push into the smart home market is anticipated, with **smart home displays expected to launch in the first half of next year**, followed by innovative smart displays with **robotic lids**.
* 🕶 The Vision Pro headset, while innovative, has faced challenges in **user comfort during extended use**, despite the promising **productivity features** it offers.
* 🖥 The upcoming Vision OS 2.2 update will introduce a feature allowing users to utilize a **wide or ultra-wide monitor** within the Vision Pro, enhancing **productivity for Mac users**.
* 🛠 To improve user comfort, Belkin has developed a new overhead strap for the Vision Pro, allowing for **longer usage periods** and **better support during productivity tasks**.

Beyond the iPhone. What is it? What is the next thing that is going to be the driver of growth? Well, let's just take a step back and talk about the iPhone for a second. Right. It generates over half of the company's revenue as a standalone product, but almost the rest of all of Apple's revenue from services to things like AppleCare to AirPods to Apple watches, even iPads, Macs, Apple TVs, HomePods, all of these things are bought by customers because they have an iPhone or because they're in the Apple ecosystem, because they fell in love with the iPhone. 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. Right. So investors have to understand that and come to that realization. But there are little bits, more modest things that Apple will bring to market,

some built around the iPhone, something completely standalone. And the hope for Apple investors is that you can stack up a bunch of 20 to $50 billion a year businesses, things about the size of the AirPods, Apple Watch, and iPad. So to answer your question, the areas that Apple is exploring and moving into obviously headsets, but beyond mixed reality going into pure augmented reality glasses or standalone glasses without displays, things like expanded versions of AirPods that tap into A.I., there have been explorations into home robotics, explorations into home energy, a way to monetize the health products into a subscription service, Right? The big thing coming next year is a push into the smart home. So for the first time, Apple's really going to dive two feet first into smart Home appliances. So in the first half of next year, you'll see a push into smart home displays.

Right. A couple of years after that, you'll see a new smart display with a robotic lid. So definitely a bunch of these little categories that they hope will add up into something bigger. One key category that was new, innovative, and perhaps hasn't taken off in the way they expected was Vision Pro. But you're saying and the latest power on that we finally got the killer app. Just talk us through it. If you have a Vision Pro, and I know there's not many of us out there. You want to try coming out in the beginning of next month is a Vision OS 2.2 update. It's available in beta now. I've been using it. There's been this long-lasting Mac external monitor feature you can put on the headset, and you can view your Mac display in there, and it's basically an enlarged version of your what's on your Mac right now. Right. A lot of people Vision Pros use that. They're adding a new feature that allows

you to add a wide monitor or an ultra-wide monitor. And so if you turn this feature on, you get a gigantic curved display that can go almost 360 degrees, and you can see what's on your Mac through that. And it's a really powerful tool and a great productivity use case for the Vision Pro. The problem is that the Vision Pro, if you're not laying down with your head on the back of a pillow on your couch, it's often hard to wear the Vision Pro for extended periods of time. And the bands that Apple includes in the box at the Vision Pro are part of the reason. There's a back and headband, and then there's a band that has a thin strap that goes behind the head on top of the head, and neither are very good for long-term productivity. But Belkin, this is a company that's owned by a Foxconn subsidiary, so they work very closely with Apple, came out

with a new overhead strap that attaches to the back of that strap. And combined, you can wear it for longer use cases.

Awaiting Apple's Next Big Thing

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

The iPhone generates over half of Apple's revenue and drives sales for other products in the ecosystem.

Apple is exploring modest business ventures, aiming to stack up multiple $20 to $50 billion a year businesses.

The company is expanding into headsets, augmented reality glasses, AI-driven AirPods, home robotics, health product subscriptions, and smart home appliances.

The Vision Pro, Apple's innovative headset, is set to receive a beta update with Vision OS 2.

2, introducing a long-awaited external Mac monitor feature.

The update will also offer a new wide and ultra-wide monitor display, providing a powerful productivity tool with a nearly 360-degree curved screen.

However, the headset's design and included bands make it challenging to wear for extended periods, leading to potential discomfort during long-term use.

The new overhead strap attaches to the back of the main strap.

This combination allows for extended wear and longer use cases.

The design aims to improve comfort and functionality during prolonged use.