Apple Could Pivot To Estimated $2.14T Social Media Industry, Too Late Says Analysts

Apple’s hardware sales are steadily going down, and with its “iPhone 7” offering already getting a lot of hate when it hasn’t even come out yet, the company’s prospects are looking grim. As such, reports are starting to come in that Apple might be eyeing social media as a potential source of new revenue. This isn’t surprising since the industry is estimated to be worth $2.14 trillion by 2020, according to Statista. Unfortunately, even if the tech company does end up doing so, analysts are already saying that it might be too late.

Bloomberg recently reported that Apple could be looking to develop video editing software, which users can then share with friends. If that sounds familiar, it’s because Snapchat is doing the exact same thing, and it has already cornered a significant chunk of the market for this type of social media platform.

The new focus is apparently in response to the overwhelming popularity of these social media companies, which sources say is a big pie that Apple wants to get a slice of. The company is starting its crusade with an overhaul of its messaging app to include cutesy emoji and animated effects, which is meant to compete with Facebook’s Messenger.

Next, the company will release the editing software, which will allow users to apply filters or draw on videos before sharing with their friends on the same platform. The new feature is meant to be usable with just one hand, and the video results could be completed and uploaded in under a minute.

The fact that Apple is trying to shake things up a bit is a welcome development, but as Computerworld points out, their effort might be too little too late. An analyst from the firm OrionX named Dan Olds commented that the presence of existing social media giants are hurdles that Apple will have a very hard time to overcome.

“Apple would have to come up with a very solid social app in order to compete with what's available today," Olds said. "Even with Apple's very large installed base of users, I think it would be very difficult for Apple to compete head-on with Facebook, Twitter or Google. I'm not sure people want to add yet another social network to manage and maintain. The market seems fairly well satisfied right now."