Tim Cook Promises More Cross Platform Apple Services, Revenue Rebound For Waning iPad

To outsiders looking in, it might seem as though Apple devices sell themselves. That isn't really the case, and if you pay attention to Apple's quarterly earnings reports, you'll notice that no matter how well the company performs, its stock price drops at the slightest hint that a particular product line or service isn't performing at peak levels. At present, it's the iPad line that has investors concerned, though Apple CEO Tim Cook believes a turnaround is ahead.

Cook and a few other company bigwigs recently held a town hall meeting at Apple's headquarters to discuss the company's Q1 earnings and future plans. One of the topics raised was that of declining iPad revenue growth. Despite a slowdown in the tablet market as a whole—not just iPads, but all tablets—Cook expects to see positive revenue growth for its iPad line by the end of the 2016. Part of the reason is because its iPad Pro is off to a promising start, and the other is that Apple will introduce another iPad model this year—iPad Air 3, perhaps?—which tends to reinvigorate sales, even if just temporarily.

iPad Pro

Taking a page from Microsoft, Cook also talked about expanding its cross-platform efforts. Apple already does this in limited capacity—Apple Music is available on Android, for example, which Cook described as a sort of test. Apparently encouraged by the results, Cook will pursue more porting efforts, though he didn't say for which services.

The 900-pound gorilla in the room is Apple's dependence on the iPhone. Some two-thirds of its revenue comes from iPhone sales, and with the smartphone sector becoming increasingly competitive, that could be cause for concern. Not for Cook, though.

Cook referred to the iPhone as the "greatest business of the future." He believes that the iPhone will remain relevant and a major part of Apple's business for decades to come, especially as 4G LTE markets expand into emerging markets where it's not already available.

Only time will tell if he's right. For now, Apple will have to be content where it sits, which is as the second most valuable company in the world.