Tencent News (Newsboy) According to informed sources, Apple has withdrawn its wireless router business unit and focused its development center on more profitable mass consumer products. Sources said that Apple had started to disband the wireless router team last year and deployed the engineers to other product development teams, including Apple TV.
In fact, since 2013, Apple has stopped updating its router products. The dissolution of the router team also showed that Apple will no longer introduce new routers in the future. An Apple spokesman declined to comment on the matter.
The router is an "intermediary" device that connects laptops, iPhones, and other devices to the Internet. Apple currently sells three wireless routers: AirPort Express, AirPort Extreme, and AirPort Time, which sell for $99, $199, and $299, respectively. This part of the business revenue accounted for only a small part of Apple's total revenue. Apple also only classified it with Apple Watch and Apple TV in other financial products. In fiscal year 2016, the project revenue totaled 11 billion U.S. dollars, accounting for about 5% of total revenue.
However, on the other hand, exiting the router business will make Apple's product ecosystem lack some “stickinessâ€. For example, some features of the AirPort router (such as wireless music playback) require the support of Apple devices. If this company no longer sells wireless routers, some users may choose other brands of mobile phones and laptops. For other router manufacturers, Apple's exit is undoubtedly an exciting good news.
Obviously, Apple also knows how to increase the competitiveness of its core products through “slimming†and focus on more profitable businesses such as the iPhone and iPad. Prior to this, Apple had also stopped producing its peripheral displays, and in cooperation with LG Corp. this year 10 launched a new strategy to sell new high-resolution displays to professional users.
Source: bloomberg
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