The First Full Week of Apple One
Apple One Bundle Options
On Friday, Apple (AAPL) launched its new service called Apple One, which offers consumers subscriptions to bundles of products. There are three different bundle options to choose from: Individual, Family, and Premier.
The Individual plan costs $14.95 per month and includes Apple Music, Apple TV Plus, Apple Arcade, and 50GB of iCloud storage. With the Family plan, which costs $19.95 per month, users get the same services offered with the Individual plan plus 150GB more in iCloud storage and an Apple Music family plan. Lastly, the Premier plan costs $29.95 per month and includes Apple Music, Apple TV Plus, Apple Arcade, 2TB of iCloud storage, Apple News Plus, and Apple Fitness Plus.
Apple Fitness Plus does not yet have a launch date, but it is expected to debut sometime before the end of the year. The app will include yoga, cycling, running, and other virtual classes.
The Rise of the Subscription Economy
The subscription economy was taking off before the pandemic, but it has gained even more traction recently because of the advantages it offers to consumers and companies. Customers can make small, monthly payments for a regular supply of shaving supplies, makeup, groceries, movies, and many other products. This allows customers to visit the store less frequently, which has made some subscription services popular during the pandemic.
For companies, the subscription model offers a steady stream of revenue each month, which is helpful during times of economic uncertainty. Amazon (AMZN) was an early leader in the subscription game with Amazon Prime. Within the last year, Disney (DIS) and Walmart (WMT) have launched massive subscription initiatives. Now, Apple is bulking up its offerings.
Hardware Is Excluded from Apple One Offerings
Investors are eager to see if Apple One will be able to carve out a place for itself in an already crowded subscription landscape. Apple One bundles will help save money for customers who already pay for each of the Apple services individually, but it will likely be difficult for Apple to lure customers away from subscriptions like Netflix (NFLX) and Spotify (SPOT).
Interestingly, Apple has chosen not to include any hardware-related perks in the Apple One bundles. The company already offers the iPhone Upgrade Program, which gives users a new iPhone each year along with access to Apple Care services. This subscription model boosts revenue from both iPhone sales and Apple Care. Some analysts wonder why the iPhone and other popular Apple hardware products are absent from Apple One offerings, and if that could change in the future.
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