Apple (NASDAQ: AAPL) wants to be a service company.
It is not that the company plans to deny hardware, but has introduced many new service-based services to develop with its devices. The company's new products for streaming video, games and news will join its highly successful Apple Music service over the next few months.
The launch of these subscription-based products together with Apple's credit card must change the revenue mix of the company, making it less dependent on the next new technology.
Of course, there is no guarantee that any of these proposals will work.
What did Apple do?
At a key event, Apple outlined its four new service-based efforts. The company presented the following products and services, although the details of some of them were scarce:
- Apple TV +: This is a subscription service in the style of Netflix . Apple has shown some creative partners (Oprah Winfrey, Steven Spielberg, Jennifer Aniston, Reese Witherspoon, Octavian Spencer, JJ Abrams and others), but did not share potential pricing.
- Apple Arcade: Game subscription service that will have over 100 original titles. "Apple Arcade will give customers the freedom to try out every game of their chosen collection of titles you can play: you do not have ads, track ads or additional purchases, and respect the privacy of your users," says a press release, pricing.
- Apple News + : This monthly subscription of $ 9.99 gives members access to over 300 magazines and content from a handful of other vendors.
- Apple Card: A credit card free of charge designed to be fully integrated with iPhone. The card offers a return of money for certain purchases, and the purpose of Apple Card is to provide interest rates that are among the lowest in the industry, and if the client misses payment, they will not receive a penalty fee. release.
It's easy to understand why Apple adds these services, but it's harder to see how some of them will turn into big hits. Apple TV + may have top-level content creators, but also several other streaming services that are already established. Why pay Apple when you already have Netflix, HBO and who knows what else?
Apple News + offers value to people who read a lot of magazines, but is it really a big audience? It seems best to be a niche product that serves an older audience – if there is a market for it
Apple Arcade is a similar risky venture. Yes, games are a popular download at iTunes, but serious gamers do not play on phones or tablets. Yes, this service eliminates the need to pay for some games and takes micropayments from a game, but this may not be enough to win a big audience.
Apple's credit card has some attractiveness, but it's not so different from the variety of other options. It makes sense for stubborn brand fans who buy new hardware every year, but this is clearly not a better offer for the general public.
Where will Apple be in one year? , but one year from now, Apple will have several well-watched Apple TV + shows, but there is no significant membership base. This is not a comment on the potential quality of the service but about the market's impact.
In the next few months, Apple will release its service and Walt Disney will also enter the space for entertainment. Man has unknown views from brand name vendors. The other has Star Wars, Marvel, Pixar and decades of child programming, making it hard to see that Apple has managed to establish itself in this space.
News + and Arcade are simply not mass-market products, and you can argue the same about the company's self-branded credit card. These three can help the end result just because costs are low. However, Apple TV + will run out of resources for years – maybe decades – as the company spends on creating programs that will make users join another streaming service. as well as now, but perhaps with less optimism about his ability to create a significant new source of revenue. As part of the greater transformation, these moves may prove important, but they can not be suppressed by themselves. xfbml = 1 & version = v2.3 & # 39 ;, true);
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