"Look at Amazon, they sell their hardware basically at cost — their tablets, their Echo devices," Colin Gillis, senior technology analyst and director of research at BGC Financial, told CNBC's "Power Lunch" on Thursday. "But they have a whole commerce business, as well as a thriving advertising business, as well as their digital consumption of music and movies that they pull in through their entire ecosystem...so [Apple] could just focus on bolstering those things."
The Wall Street Journal on Thursday reported that Apple is building a "significant new business" in original television shows and movies. Citing unnamed sources, the Journal said the new content would come as part of Apple Music by the end of 2017.
"It remains to be seen whether this is a meaningful move into original content, a space where you've already got firm No. 1, Netflix, and Amazon pouring in billions of dollars," Gillis said. "Apple clearly is late."