Unfortunately, Apple stock holders just got word that the tech company has hit yet another speed bump on that road to new revenue sources.
And this time, it’s the much-anticipated streaming video plans that have hit a snag.
Apple Streaming Video May Wither on the Vine
The CBS CEO’s statement is about as close to the horse’s mouth as you’ll get to news on an Apple streaming service, save for CEO Tim Cook himself. Apple stock holders have seen rumors for the better part of a year that AAPL was pushing for a streaming service this year that partnered with broadcasters like CBS and others.
But the Apple streaming video service keeps getting pushed back or hung up.
That’s partly due to complex negotiations with the major broadcast networks. According to a spring report in the Wall Street Journal, “The [Apple streaming video] service would have about 25 channels, anchored by broadcasters such as ABC, CBS and Fox and would be available on Apple devices such as the Apple TV.”
Of course, that report also predicted Apple would see the service debut this fall … which obviously hasn’t happened.
What makes the most recent delays and rumors noteworthy is that they hint at AAPL killing the entire project.
“I think they pressed the hold button,” CBS CEO Les Moonves said at the conference, mentioning that the service was hung up largely during discussions around price.
AAPL Stock – Can It Control Its Destiny?
As with all things, investors in Apple stock need to take these reports with a grain of salt. Apple rumors are a cottage industry, and hints at everything from an Apple car to an Apple flat screen TV have come to naught despite plenty of Internet buzz. At the same time, the Apple Watch — while much delayed — did, in fact, deliver eventually.
However, what’s most important for AAPL stock holders to admit is that the insular and controlling world of Apple Inc. is not what it used to be. Whereas the mobile iOS operating system for the iPhone was once heralded as a closed, but efficient and clean system, future endeavors will demand many more partners — and many messy relationships.
Will Apple be able to get those deals done, for the sake of future growth?
Or will Apple fail to play nice with other corporate partners and continue to try and control everything on its own?
There’s no denying the margins have been good thanks to Apple Inc. staying at the center of things and keeping a tight rein on operations. However, future growth will rely on business building and partnerships instead of innovative new product launches.
If Apple TV does wither on the vine, it could be a very bad sign for the next chapter of AAPL stock.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.
More From InvestorPlace
- Netflix, Inc. Won’t Languish Long If the Bulls Have Their Way (NFLX)
- Why Fitbit Inc (FIT) Stock Will DOMINATE 2016
- Stocks to Sell: 7 Stocks Analysts LOATHE