Apple Inc., the maker of iPhone, iPad, and MacBook laptops is now also heavily invested in software subscription services. The company could be in the process of assimilating all the different subscription services into one package, making it simpler for its customers. The immediate result of the move could be lowered tariffs and simpler payment patterns.
Currently, all the different services that Apple Inc. offers, including the just-launched Apple News+, Apple TV+, and Apple Arcade, are offered separately. Each has a different payment plan and multiple tariffs depending on the consumption patterns and taste of consumers. It is quite likely that Apple could still allow a staggered subscription while ensuring all the different platforms are available under a single umbrella.
Apple Inc. To Unify Subscription Services Next Year?
Apple Inc. was traditionally a hardware manufacturer that makes premium electronic devices like Apple TV, iPhones, iPad tablets, MacBook computers, and more. However, over the past few years, the company has increasingly diversified its portfolio. The company has increasingly added several software services that are exclusive for its products.
The company recently held its first-ever event dedicated exclusively to services, which is a strong indicator of the company’s rising interest in software and cloud-based services. At the event, Apple introduced Apple News+, Apple TV+, and Apple Arcade. Needless to add, these services are in addition to Apple Music, Apple Pay and other services that the company already offers.
— Forbes (@Forbes) November 14, 2019
Apple News+ sells access to dozens of publications for $10 a month. This month, it launched Apple TV+ for $4.99 a month. Subscribing to all of the subscription-based services that Apple Inc. offers can not only be difficult to manage, but it can also add up to a significant cost to the end-user. Considering that companies like Amazon offer most of its services through a unified Amazon Prime program, Apple could be contemplating bundling its subscription services – specifically, Apple News+, TV+, and Music – into a single subscription.
The most convincing indicator of Apple’s next move is that the company recently added a provision to the News+ subscription. Apple now wants to be able to bundle the News+ subscription service with other paid digital offerings, reported Bloomberg. In its current iteration, Apple and the suppliers of magazines and newspapers each get to keep half of the monthly subscription price.
Bundling Services To Benefit Apple Inc. And iPhone, iPad Buyers?
Bringing the different subscription services together under a single structure could significantly lower the total cost burden for consumers. However, there’s an even greater benefit for Apple. In addition to simplifying the process, Apple could attract more buyers for iPhone, iPad and MacBook computers as the latter would find it quite attractive.
Would you pay for a bundle of all Apple's services? Here's why they're considering the change as soon as 2020 pic.twitter.com/JOjzn95KaD
— Bloomberg TicToc (@TicToc) November 14, 2019
Premium smartphone sales haven’t been racing upwards steadily for quite some time. Apple clearly understands the same. Hence diversifying the portfolio to include software and subscription services could be a reliable revenue source. Moreover, companies like Amazon, Google, Microsoft, and many other tech giants with retail-facing endeavors, have been successfully expanding into subscription-based services.
Incidentally, Apple may unify Apple News+, TV+, and Music into a single subscription package as early as next year. However, the company could categorically keep Apple Arcade out of the bundle. It could be because of PlayStation Now, Google Stadia and other cloud-gaming platforms.