How 'Hotel Apple' can make Apple a $1 trillion company

Apple’s last earnings report was historically good.

It had $US74.6 billion in revenue, higher than what Amazon, Google, and Microsoft had generated in revenue combined. Now, Apple is worth $US736 billion.

Yet, some analysts believe Apple could grow even further and become a $US1 trillion company.

According to UBS, Apple could get to $US1 trillion by creating a “mega-ecosystem” with its iOS platform.

CEO Tim Cook has pointed out that consumers may be happy to get all their services from one company. UBS quotes him Cook saying, “None of us wants to have different platforms in different parts of our lives. We want one, seamless kind of life. And so I think that is huge for our future. It’s not every day you can plant that many foundational technologies.”

What does Cook mean by “foundational technologies?”

UBS points out four services — Apple Pay, Car Play, HomeKit, and HealthKit — that will play an important role in expanding the iOS platform. Apple Pay is for mobile commerce, and Car Play connects the iPhone to cars. HomeKit helps you control everything at home with your iPhone while HealthKit is a software for tracking your own health.

Once these services collectively establish itself as being “in all parts of life,” as Apple CEO Tim Cook once put it, then Apple will be able to create a “mega-ecosystem” that’s more powerful than “Wintel” — the partnership between Microsoft’s Windows OS and Intel chips that has dominated consumer tech for decades, it says.

“[Cook] called it a ‘mega-ecosystem’ that has grown 10x stronger in the last few years, or what we would liken to a Hotel California from which users don’t want to check out,” it says. “Hotel Apple could be more influential than was Motel Wintel.”

But in order to do this, the report emphasises the iPhone will still have to play a central role. The iPhone is Apple’s largest business and its first point of contact to consumers.

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