Services growth vital as Apple possibly moves assembly to Indonesia

In today’s Apple news, Bernstein analyst Toni Sacconaghi expressed the view that the company has no choice but to succeed with launching new services, because he believes that the firm’s current services could start delivering growth of below 10% in a relatively short time, possibly even 3 to 4 years.

Bernstein went on to say that services growth was vital for the company’s top line, and also because it had the potential to stabilise the firm’s gross margins in general. These have been dropping every year for the past 5 years.

Bernstein concluded by saying that going forward, the Cupertino-based company’s installed base was likely to stay more or less flat and services growth will probably fully depend on new expansions, whether that be via new products or services, or improved monetisation of current businesses.

The question remains of course whether Apple hasn’t finally run out of viable new ideas under Tim Cook. Only time can answer that.

In other Apple news this week, DetikInet reported from Indonesia that Pegatron is about to begin assembling iPad and MacBook Pro devices in that country. This will happen through PT Sat Nusapersada, a local manufacturer from Batam.

According to the reporters, PT Sat Nusapersada CEO Abidin Hasibuan didn’t deny that his firm would begin to assemble products next month. They added: “The CEO did not specify the client or clients it would be working for, but said the products would be shipped to the U.S.”

The report goes on to say that, since Pegatron started working with this particular manufacturer a short while ago, it was very likely that the orders were from Apple.

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