Apple Inc. A wide range of ready-made packages allows customers to subscribe to some of the company̵7;s digital services for a lower monthly price, according to people knowledgeable about the effort.
The packages, dubbed “Apple One” inside the Cupertino, California-based tech giant, are expected to launch in early October alongside who said the next iPhone line. These plans are designed to encourage customers to subscribe to additional Apple services, which will generate more recurring revenue.
According to those asked to remain anonymous, there will be various levels of discussion about privacy plans. A basic bundle will include Apple Music and Apple TV +, while a more expensive variant will have those two services and the Apple Arcade gaming service. The next floor will add Apple News +, followed by a more expensive plan with additional iCloud storage for files and photos.
Apple’s plans, and the structure of the packages, are subject to change. But the goal is to offer groups of services at a price lower than what would be charged if the consumer subscribes to each service group individually. An Apple spokesperson declined to comment.
This initiative is a major attempt by Apple to gain similar loyalty Amazon.com Inc. Win with its Prime program, which combines free shipping with video streaming and more for an annual or monthly fee. This package is the cornerstone of Amazon’s success and has been previously mimicked by other companies with mixed results.
Apple doesn’t have the same e-commerce warehouse and delivery network as Amazon, but it does have hundreds of millions of enthusiastic hardware customers who have accepted some of its digital subscriptions. The iPhone and iPad will suggest different packages to users based on the Apple apps and services they have used. The feature will roll out later this year as part of iOS 14, the next software update for Apple devices.
The company is also developing a new subscription for virtual fitness classes that can be used through an app for iPhone, iPad and Apple TV, the people said. That service will be offered in a more premium package than the rest of Apple services. Codenamed “Seymour”, the workout package will compete with virtual classes offered by companies including Peloton Interactive Inc. and Nike Inc., according to the people.
The new plans will be aimed at families, which means they’ll work with Apple’s Family Sharing system, providing access for up to six people per service. Services are designed to save consumers between $ 2 and $ 5 a month, depending on the plan chosen. For example, if a family signs up today with all the major Apple services plus the highest level of iCloud storage, that fee will be around $ 45 a month. A new package can cost you more than $ 5 off.
This approach will likely be applauded by Wall Street, which aspires to businesses that generate reliable revenue streams. However, there is also a risk of confusing consumers with the many subscription options. This has hindered the launch of the HBO Max streaming service, introduced this year alongside existing offerings HBO Go and HBO Now.
The initiative is being led by Peter Stern, a top lieutenant with Eddy Cue, Apple’s longtime chief services officer. Bloomberg News reported last year that Apple was Target package launch in 2020.
At first, Apple didn’t plan to integrate plans with services like AppleCare support or monthly billing for hardware like the iPhone or Mac. Earlier this year, as part of Apple Card, Apple began Provides interest-free monthly payments for some of its devices.
In addition to service packs, Apple is planning new hardware and software packages, including giving buyers of an Apple TV decoder box a year for free Apple Arcade. That will follow a year of free TV + made available to people who buy new Apple devices.
Read more: Apple cancels video games in its shift strategy to keep subscribers
apple tested the waters with a subscription last year, providing students with free access to TV + with an Apple Music subscription, though the company has never confirmed a broad-based plan plan for all also its main paid services.
Company signaled the possibility that it included a provision in transactions with News + participating publishers that said the service could eventually be bundled with other services.
For years, analysts and investors have urged Apple to imitate Amazon’s Prime approach. Some of Apple’s newer offerings, including News + and TV +, have been slow to start. By combining them with discounts on more popular services, usage and subscriptions can increase.
Read more: Apple’s new offerings started sluggishly during the first year
Apple’s services division is one of the company’s fastest growing areas and has become a $ 50 billion annual business. While services like advertising and AppleCare declined in recent quarters due to the Covid-19’s influence, digital services such as the App Store, iCloud and video products have set records.