Just about every successful company has a cash cow. For the uninitiated, a cash cow is basically a product or service that makes up for a large percentage of the company’s revenue. So much so that the company actually depends upon this product or service, and if something were to happen to this revenue flow, things would soon get dire.
For Google, it is its Search Advertising Business, and similarly, the iPhone brings in a lot of revenue for Apple. In fact, a large percentage of the company’s revenue comes from iPhone and iPhone-related products.
But now, it seems Apple’s iPhone is slowing down, since many of its suppliers are warning of lower revenues due to slowing sales. TSMC, the iPhone’s chip supplier predicts a 11% decline in sales, while the iPhone’s camera module supplier, Largan Precision Co. also expects a slowdown in sales. In fact, other suppliers are also giving similar reports.
With over $300 billion in the bank, Apple has nothing to worry about, for now. If iPhone sales slow down too much, then Apple would have to work on finding its next cash cow. One thing is clear: Being the most valuable company in the world, it isn’t going anywhere anytime soon, but to sustain growth, it must have a hit product its hands. What do you think?