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Apple (AAPL) Defers Inclusion of Group FaceTime in iOS 12

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Apple (AAPL - Free Report) is postponing the release of the group FaceTime feature announced at its Worldwide Developers Conference (WWDC) in June 2018.

Group FaceTime, initially part of Apple’s upcoming releases such as iOS 12 and macOS Mojave scheduled for September this year, enables up to 32 people to participate in both audio and video calls. Additional features include live photo snaps and use of Apple’s Animoji.

Notably, the features are expected to be rolled out as part of the next software update, leaving users disappointed with the buzz created during the conference.

Moreover, the delay may now cost Apple in terms of competitive prowess as the group video chat space is overcrowded. The fields is currently dominated by the likes of Facebook owned WhatsApp and its Messenger app, Microsoft’s (MSFT - Free Report) Skype and Alphabet’s (GOOGL - Free Report) Google Hangout services.

 

Apple Inc. Revenue (TTM)

Apple Inc. Revenue (TTM) | Apple Inc. Quote

Services Focus to Drive Growth

Nevertheless, Apple’s decision to postpone the service promises a superior product, which has been the hallmark of the company. We believe the service, once launched, will enjoy significant adoption due to the company’s loyal customer base. This will eventually boost its services revenues.

Apple's Services segment, which includes revenues from Internet Services, App Store, Apple Music, AppleCare, Apple Pay, and licensing and other services, has become the new cash cow for the company. In the reported quarter services revenues (17.9% of sales) surged 31% year over year to $9.55 billion.

Moreover, Apple’s focus on fast emerging technologies such as augmented reality/virtual reality (AR/VR), Internet of Things (IoT) and Artificial Intelligence (AI) bodes well. The company’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.

Furthermore, Apple, with its new offerings, will also be able to leverage the Internet of Things (IoT) market, which is expected to grow exponentially, given the rising demand for connected/automated devices, appliances and automobiles.

Apple is diversifying further to stay ahead in the race. The company is investing heavily in original content and developing its own streaming service.

The iPhone maker is already developing a number of TV shows, revolving around big names in Hollywood.

Apple currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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