Earlier this week, Apple (AAPL) - Get Apple Inc. Report unveiled a raft of new businesses, spanning from online streaming to credit cards as it moves to become less reliant on iPhone sales and focus on subscription and services revenues.
Apple's "It's Showtime" event on the company's Cupertino, California campus, which included appearances from U.S. entertainment icons Oprah Winfrey and Steven Spielberg, gave investors their first look at a series of plans built off the so-called 'installed base' of 1.4 billion smartphones around the world. Apple will push into four new categories -- news, television streaming, video gaming and credit cards -- in a move that could take overall services revenue to around $60 billion next year, according to some analysts's forecasts, and transform the iconic iPhone maker's business model going forward.
Apple Card, the group's first foray into the credit card business, is likely to be the most profitable of the four new services revealed Monday in Cupertino, analysts have said, although there are questions as to whether the competition it will bring to other bank card provides, such as JP Morgan (JPM) - Get JPMorgan Chase & Co. Report or Citigroup (C) - Get Citigroup Inc. Report , will impede growth prospects for its Apple Pay division.
Apple News is another service that could create competition concerns, given that the single-app subscription offering will aggregate content that would cost around $8,000 a year individually for just a $120 annual fee, but it nonetheless has the power to attract a significant subscription base.
On Thursday, Warren Buffett said that he wasn't sold on Apple's new services. Watch to see why, unlike Buffett, Cramer is.
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