Apple’s soaring shares lifted the company to close to a market value of $ 2 trillion following a report that the company will introduce bundles of TV, music, video games, iCloud and other services.
The tech giant’s shares jumped 2% in mid-day trading to surpass $ 461, setting a new high of $ 464.14.
The company may begin offering bundles of products, called “Apple One” by employees in October when it starts selling a new line of iPhones, Bloomberg News reported. Price and grade have not been determined. An Apple representative declined to comment on the report, citing unknown company sources, when Deadline made contact.
The packaging could be a boon to the fortunes of Apple TV +, the online video service introduced last November. The company offered a free year with a $ 5-a-month discount to anyone buying an Apple device, but that promotion period will close soon. After a less optimal launch, when Morning and other early shows that drew mixed opinions and overshadowed by Disney +, Apple has seen its streaming fortunes improve markedly.
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Along with 18 Emmy Award nominations for Morning and other titles, Apple has won acclaim in 2020 for its animated series Central Park, documentary Beastie Boys Story and collection Little America. With $ 245 billion in cash on its balance sheet, it also rocked the film business with a series of drastic moves. It bought the movie World War II by Tom Hanks greyhound from Sony and Martin Scorsese-Leonardo DiCaprio reuniting The killer of the flower moon and the action movie of Antoine Fuqua Liberate, release, free, starring Will Smith.
Apple has yet to release any viewer or subscriber data for Apple TV +.
Even before COVID-19, service became a strategic focus for Apple as the tech giant shifted away from hardware, which had higher economic sensitivity and less reliable profit margins. After more than a decade of becoming a standard-carrying device, the iPhone first announced a drop in sales in 2018, though it has since stabilized again. In the services division, gross margin topped 67% for the quarter ended June 30, with total revenue of $ 13.2 billion. Apple currently has 550 million paid subscribers for its various services, within reach of its 600 million target by the end of 2020.
Apple Music is the anchor of the service effort, alongside iCloud and Apple TV. Recently, the company added Arcade and News + alongside Apple TV +.
The Bloomberg report also says the company is looking to roll out an online subscription service for fitness classes, which will provide an opportunity to overtake Peloton and Nike in the booming space. Peloton reached 1 million online subscribers in May, while Nike reported 25 million new members in the fourth quarter.