“With iPhone sales slowing down, Apple could rely on its Services business more than ever to drive growth,” JP Mangalindan writes for Yahoo Finance. “In order to expand that business, the tech giant may need to launch a ‘media bundle’ to rival Amazon’s.”
“In a report published in late January, Morgan Stanley analyst Katy Huberty contended Apple’s Services unit — which includes the App Store, AppleCare, iTunes, and iCloud — could reinvigorate Apple’s performance, particularly if Apple follows through later this year with the launch of a ‘media bundle,'” Mangalindan writes. “Here’s how an Apple media bundle, or an Apple Prime, could work: subscribers pay a fee each month to access a Netflix-style streaming service with original films and TV series — the tech giant has at least 20 original projects in the works — as well as Apple Music and a subscription news service.”
“The launch of a compelling Apple Prime-type package is key to shoring up Services growth, reiterates Bernstein analyst Toni Sacconaghi,” Mangalindan writes. “‘To beat our current expectation for deceleration of overall Services revenues from 24% growth in 2018 to 16% in 2019, Apple will need to add mid-to-high single digits growth back to Services revenues through successful launch of the ‘Apple Prime’ bundle including original video that we expect to be rolled out this Spring/Summer’ Sacconachi wrote in a report published on Monday.'”
Read more in the full article here.
MacDailyNews Take: Apple could make a more compelling “Prime” bundle than even Amazon can offer because their original content sounds like it will be better and Apple Music + Apple News/Texture are unmatched. If they rolled some iCloud storage deal into it, it’d be tough to resist for many, many people!
As soon as Apple launches their original content video service, an “Apple Prime” will make even more sense. — MacDailyNews, August 29, 2018
We’d really like to see a way to pay for all of the Apple services we choose for one price. Give us a bunch of tick boxes and let us choose our combination of iCloud storage, Apple Music, iTunes Match, etc. and let us pay a single price for all of our choices. — MacDailyNews, October 17, 2016
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