On Monday, Apple unveiled their new services at a press event which included a streaming video service and a branded credit card, among other things. The company is shifting its focus to subscription services as a way to make up for falling iPhone sales.

But analysts seemed unimpressed by this announcement and shares of Apple’s stock actually declined after the event. This is fairly typical for Apple as their shares tend to go down after a major media event and bounce back in the coming months.

But it’s unclear whether these new products will be able to give Apple the change in direction it needs. And analysts seemed to be left with many unanswered questions.

Apple Faces an Uphill Battle

The iPhone makes up two-thirds of the company’s revenue and sales have been falling since 2015. Apple needs to shift gears but it’s unclear whether these new services will take the company in the right direction.

For these new products to work, they will need to generate billions of dollars in lost iPhone sales. But each of these products faces stiff competition in the marketplace, particularly Apple TV.

For Apple TV to be successful, it will have to be able to compete with Netflix, Amazon, and a number of other streaming services. Netflix alone is available in 190 countries and has 139 million paid subscribers.

Amazon has 100 million Prime subscribers and Hulu has 25 million subscribers. Plus, Disney is expected to launch its own streaming service. The streaming market is already fairly saturated and Apple is, as one analyst put it, “late to the party.”

Will These New Changes be Enough?

In spite of these challenges, Apple TV does have the potential to bring in a lot of new revenue for Apple.

Apple plans to introduce a large amount of original content and the company has a large built-in audience. And in spite of the market saturation, most people subscribe to multiple streaming services.

And notably, the company plans to make Apple TV available to non-Apple customers. This is a rare move for Apple and could help draw in an entirely new audience.   

However, analysts at Citi Research felt the new products announcements are unlikely to give Apple the kind of revenue boost they need. One analyst stated that the new products are unlikely to move the needle since consumers are “slow to change their behavior.”