The streaming wars just turned into a bundle battle.
Blink and you might have missed it at Apple’s event Tuesday, but the announcement the tech giant spent the shortest amount of time on may have the biggest implications for the company.
In success, Apple One will be the smartest move Cook has made in his tenure atop Apple to address the company’s biggest challenge: shifting its focus away from iPhone reliance to grow its Services business. Last year, Services revenue jumped 16% from the previous year to $46 billion, but it still only accounted for about 18% of Apple’s total sales for the year. Meanwhile, iPhone revenue represented about 55% of total revenue.
From the consumer standpoint, if you already use at least two of the services included in the bundle, it makes economic sense to just bundle up. For instance, if you already use Apple Music and Apple TV+ , then you’re already paying three cents more than the $14.95 per month it costs for the lowest tiered Apple One bundle. And if you have a family, it makes even more sense from a cost-savings perspective.
People are spending more time at home due to COVID-19, which means higher than average video, music and gaming consumption. If you’ve been curious about Apple TV+, Apple Music, Apple Arcade, Apple News+ or Apple Fitness+, now you have more incentive to try them out.
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