Apple Inc. (NASDAQ:AAPL) is venturing deeper into service offerings as it looks to counter a slowdown in iPhone sales amid saturation concerns. The tech giant is planning to launch a new subscription plan that will bundle a number of services.
Apple One Plans
Apple One is the name of the new subscription plan, which will feature package services such as Apple TV, Apple Music, Apple News, and iCloud storage. In addition, the company intends to offer new software and hardware combinations, including Arcade and streaming box. The ultimate goal is to provide customers with a discount for packaging everything.
According to reports, the new bundle plans could lead to monthly savings in the range of $5. A basic package of the plans will combine Apple Music with Apple TV+. A higher package for people willing to spend more could feature Apple Arcade Apple News+ and iCloud storage.
A bundled plan should provide an avenue for Apple to lock in more customers to its services, borrowing a leaf out of Amazon, which has a similar package in the form of Amazon Prime. The new subscription plan should be ready for subscription in October in line with the unveiling of a new iPhone line.
Focus on Services
Service offerings have become a key driver of Apple bottom line, the segment having delivered $13.16 billion in revenue in the third quarter. The double-digit growth has come at the backdrop of Apple investing immensely on this front as it looks to offset any declines on the hardware front.
The new bundle plans should help Apple drive subscriptions and users to new content services such as Apple TV+, Apple News, and Apple Arcade. The company is looking to lock in as much as 600 million paid subscribers by the end of the year.
During its recent earnings call, the tech giant acknowledged that it is close to that target with bundle plans unveiling expected to accelerate the same. The subscription plan should also help the company drive subscriptions for its content offerings rather than relying on third-party commissions.