Apple borrows subscription from Amazon but comes up short

Apple Watch Fitness

Source: Apple Inc.

Apple on Tuesday announced its long-rumored Apple One bundle, a tier system of subscription packages that gives you access to the company’s digital services such as music, video, streaming fitness classes and iCloud storage for one monthly price Provides.

This is a move that Apple Watchers, Investors and Geeks have wanted for ages, and it comes right out of Amazon’s Prime Playbook: lock customers in with an attractive subscription bundle and always keep them on while guaranteeing future sales Keep it tied up in your ecosystem.

But Apple’s offering falls short of the nature of Amazon Prime, which gives you a day or two of shipping for free, with features such as access to streaming video with sweetness on top, streaming music and discounts on Whole Foods. With the exception of Apple Music, there are no clear indications that Apple’s services are sufficiently compelling to attract a meaningful customer base. Apple’s latest slate services are items that arrived late in the world by digital media rivals such as Netflix, Disney-owned Hulu, Spotify, and several successful mobile gaming firms.

Even though the Apple One bundle will save customers money as opposed to signing up for each service individually, there is still a lack of the “Wow, I’m Gotta Have This” factor. While Amazon starts its subscription with an attractive free-shipping option and adds bonuses on top, Apple is starting with bonuses first and stopping at one thing that would make the Apple One a blockbuster.

So, what’s missing?

the Iphone.

“We found that the Apple One services announcement fell relatively low yesterday: consumers cannot choose which services they prefer, saving from the purchase of the item by not forcing it relative to the purchase of the item on annual plans And we believe it can be difficult to move users from competitors. Music, video or gaming services, where they are often thrilled, “said Rhythm in a note to investors on Wednesday morning. “We believe Apple should bundle its hardware more creatively [and] Services in Unified Membership Bundles. ”


The Apple One bundle lacks the “creativity” necessary for the product to actually demand juice. With so many Incumbents already offering rival services for a massive subscriber base, it is unlikely that you would prefer to switch to multiple Apple’s bundles, as it offers discounts. Apple was unable to leverage its strengths in hardware. Apple One is more attractive than its rivals, although it already has the weapon it needs in its arsenal, also with the iPhone, the most profitable and popular product.

Apple already has an iPhone upgrade program, which gives you a new iPhone with AppleCare service for about $ 35 per month every year. This is an attractive and popular program that not only drives new iPhone sales, but also helps boost the company’s significant service revenue with AppleCare. Now imagine merging the iPhone upgrade program with AppleOne, and you suddenly have an attractive offer that will be hard to pass just like Amazon Prime.

Apple One’s announcement is that Apple had not announced a new iPhone model for the first time since 2011 at a September event. It is entirely possible that Apple will offer the iPhone at Apple One when it announces the next iPhone 12 at another event. Expected in October. On the other hand, if Apple had planned to induct Apple into Apple One, the Tuesday announcement would probably have survived for the next month.

The growth story of Apple’s services is still impressive, and that business alone booked more than $ 13 billion in revenue in its fiscal third quarter. But if that line item is about to continue its rapid growth story without a game-changing new hardware product category on the immediate horizon, it would have to see the iPhone as a linchpin to sustain growth.